Reviewing Eagle Financial Services (NASDAQ:EFSI) & Kentucky Bancshares (OTCMKTS:KTYB)

Kentucky Bancshares (OTCMKTS:KTYB) and Eagle Financial Services (NASDAQ:EFSI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Earnings & Valuation

This table compares Kentucky Bancshares and Eagle Financial Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kentucky Bancshares	N/A	N/A	N/A	N/A	N/A
Eagle Financial Services	$59.17 million	3.21	$15.34 million	$2.23	15.85

Eagle Financial Services has higher revenue and earnings than Kentucky Bancshares.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kentucky Bancshares and Eagle Financial Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kentucky Bancshares	0	0	0	0	0.00
Eagle Financial Services	0	2	1	0	2.33

Eagle Financial Services has a consensus target price of $39.50, indicating a potential upside of 11.74%. Given Eagle Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe Eagle Financial Services is more favorable than Kentucky Bancshares.

Profitability

This table compares Kentucky Bancshares and Eagle Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kentucky Bancshares	N/A	N/A	N/A
Eagle Financial Services	9.30%	10.61%	0.87%

Insider and Institutional Ownership

0.3% of Eagle Financial Services shares are owned by institutional investors. 15.0% of Kentucky Bancshares shares are owned by company insiders. Comparatively, 8.7% of Eagle Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Eagle Financial Services beats Kentucky Bancshares on 8 of the 9 factors compared between the two stocks.

About Kentucky Bancshares

Kentucky Bancshares, Inc. operates as the bank holding company for Kentucky Bank that provides commercial and consumer banking products and services. It accepts various deposit products, including checking, savings, and money market accounts; and certificates of deposit, safe deposits, interest and noninterest bearing deposits, and time deposits. The company also offers commercial, agricultural, and real estate loans to small-to-medium-sized industrial, service, and agricultural businesses; and residential mortgages, installments, and other loans to individual and other non-commercial customers. In addition, it provides credit cards and other consumer-oriented financial services; brokerage services, annuities, life and long-term care insurance, personal trust, and agency services; and Internet banking services, such as bill payment. The company has operations in Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford, and other counties in Kentucky. Kentucky Bancshares, Inc. was founded in 1851 and is headquartered in Paris, Kentucky.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The company’s deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.