ENB Financial (OTCMKTS:ENBP) and First Foundation (NASDAQ:FFWM) Head-To-Head Review

ENB Financial (OTCMKTS:ENBP) and First Foundation (NASDAQ:FFWM) are both financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares ENB Financial and First Foundation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENB Financial	N/A	N/A	N/A
First Foundation	1.34%	1.07%	0.07%

Earnings and Valuation

This table compares ENB Financial and First Foundation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENB Financial	N/A	N/A	N/A	$2.60	6.57
First Foundation	$160.77 million	2.60	-$199.06 million	($3.66)	-2.02

ENB Financial has higher earnings, but lower revenue than First Foundation. First Foundation is trading at a lower price-to-earnings ratio than ENB Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ENB Financial and First Foundation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENB Financial	0	0	0	0	N/A
First Foundation	0	4	1	0	2.20

First Foundation has a consensus price target of $7.80, suggesting a potential upside of 5.41%. Given First Foundation’s higher probable upside, analysts plainly believe First Foundation is more favorable than ENB Financial.

Institutional and Insider Ownership

0.3% of ENB Financial shares are held by institutional investors. Comparatively, 73.1% of First Foundation shares are held by institutional investors. 1.8% of ENB Financial shares are held by insiders. Comparatively, 8.3% of First Foundation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

ENB Financial pays an annual dividend of $1.06 per share and has a dividend yield of 6.2%. First Foundation pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. ENB Financial pays out 40.7% of its earnings in the form of a dividend. First Foundation pays out -1.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

First Foundation beats ENB Financial on 9 of the 12 factors compared between the two stocks.

About ENB Financial

ENB Financial Corp operates as the bank holding company for Ephrata National Bank that provides various financial services to individuals and small-to-medium-sized businesses in Pennsylvania, the United States. The company's deposit products include non-interest bearing and interest-bearing demand deposits, NOW accounts, money market deposit accounts, savings accounts, and time deposits. Its loan portfolio comprises secured and unsecured commercial, real estate, and consumer loans. The company also provides direct deposit and direct payments of funds through electronic funds transfer. In addition, it offers ATM, telephone banking, debit and credit card, safe deposit box, remote deposit capture, and trust and investment advisory services, as well as internet banking services, that includes bill pay and wire transfer. The company was founded in 1881 and is headquartered in Ephrata, Pennsylvania.

About First Foundation

First Foundation Inc., through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States. The company operates in two segments, Banking and Wealth Management. It offers a range of deposit products, including personal and business checking accounts, savings accounts, interest-bearing demand deposit accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, commercial term loans, and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. The company also provides various specialized services comprising trust services, online and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, it offers investment management and financial planning services; financial, investment, and economic advisory and related services; and treasury management services, such as bill pay, check/payee/ACH positive pay, wire origination, internal and external transfers, account reconciliation reporting, mobile deposit, lockbox, cash vault services and merchant processing. Further, the company provides support services, including the processing and transmission of financial and economic data for charitable organizations. It operates through a network of branch offices and loan production offices. The company was founded in 1985 and is headquartered in Dallas, Texas.