Contrast Arrow Financial (NASDAQ:AROW) and ETFs (NYSE:ETF)


ETFs (New York Stock Exchange: ETFsGet a rating) and Arrow Financial (NASDAQ: AROWGet a rating) are both finance companies, but which is the better stock? We’ll compare the two companies based on earnings strength, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Risk and Volatility

ETF has a beta of 1.14, which means its stock price is 14% more volatile than the S&P 500. In comparison, Arrow Financial has a beta of 0.63, which means its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of ETFs and Arrow Financial.

Net margins Return on equity return on assets
ETFs 30.30% 8.23% 1.05%
Financial Arrow 33.71% 13.98% 1.25%

Benefits and evaluation

This chart compares ETFs and Arrow Financial’s earnings, earnings per share, and valuation.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
ETFs $1.34 billion 3.19 $405.00 million $1.23 9.85
Financial Arrow $147.92 million 3.40 $49.86 million $3.09 10.17

ETF has higher income and profit than Arrow Financial. ETF trades at a lower price-to-earnings ratio than Arrow Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ETF and Arrow Financial ratings, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
ETFs 0 2 4 0 2.67
Financial Arrow 0 0 0 0 N / A

ETF currently has a consensus target price of $13.62, indicating a potential upside of 12.45%. Considering the higher possible upside of ETFs, research analysts clearly believe that ETFs are more favorable than Arrow Financial.

Insider and Institutional Ownership

77.8% of ETF shares are held by institutional investors. By comparison, 43.6% of Arrow Financial’s shares are held by institutional investors. 0.9% of ETF shares are held by insiders of the company. By comparison, 4.2% of Arrow Financial’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is ripe for long-term growth.

Dividends

ETF pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. Arrow Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.4%. ETF pays 39.0% of its earnings as a dividend. Arrow Financial pays 34.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Arrow Financial has increased its dividend for 21 consecutive years.

Summary

Arrow Financial beats ETFs on 9 out of 16 factors compared between the two stocks.

About ETF (Get a rating)

ETF Corp. is a financial holding company. It engages in the provision of financial services to consumers, businesses, governments and small and medium enterprises. The Company operates through the following segments: community banking, wealth management, insurance and others. The Community Banking segment includes corporate and consumer banking. The Wealth Management segment provides wealth management services to individuals, businesses and pension funds, as well as existing customers of community banks. The Insurance segment is a full-service insurance brokerage agency offering commercial and personal insurance lines through major insurers. The Others segment provides mezzanine financing options for small and medium-sized businesses that require financial assistance beyond the parameters of typical commercial bank loan products. The company was founded in 1974 and is based in Pittsburgh, PA.

About Arrow Financial (Get a rating)

Arrow financial logoArrow Financial Corporation, a bank holding company, provides corporate and personal banking, financial products and services. The Company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, term deposits and other term deposits. Its lending activities include commercial loans, such as term loans, term notes and lines of credit; and commercial real estate loans to finance real estate purchases, refinances, expansions and improvements of commercial properties, as well as commercial construction and land development loans to finance projects. The Company’s lending businesses also include consumer installment loans to finance personal expenses, personal lines of credit, overdraft protection and automobile loans; and residential real estate loans, home fixed loans and home equity lines of credit for consumers to finance home renovations, debt consolidation, education and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations in the secondary market. In addition, the company provides retirement planning, trust and estate administration services to individuals; and pension, profit sharing and corporate benefits administration services. In addition, it offers insurance agency services including group healthcare policies and life insurance products, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the upstate New York region in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany and Schenectady counties and surrounding areas. It has 26 bank branches; and leases 12 bank branches, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.



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