Critical Comparison: Access National (ANCX) & E*TRADE Financial (ETFC)

Access National (NASDAQ: ANCX) and E*TRADE Financial (NASDAQ:ETFC) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Access National and E*TRADE Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Access National $127.57 million 4.71 $16.50 million $1.61 18.01
E*TRADE Financial $2.37 billion 7.23 $614.00 million $2.19 29.61



E*TRADE Financial has higher revenue and earnings than Access National. Access National is trading at a lower price-to-earnings ratio than E*TRADE Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Access National has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, E*TRADE Financial has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Access National and E*TRADE Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Access National 0 2 4 0 2.67
E*TRADE Financial 0 2 15 1 2.94

Access National presently has a consensus target price of $31.00, indicating a potential upside of 6.90%. E*TRADE Financial has a consensus target price of $61.18, indicating a potential downside of 5.65%. Given Access National’s higher possible upside, research analysts plainly believe Access National is more favorable than E*TRADE Financial.

Insider and Institutional Ownership

39.8% of Access National shares are owned by institutional investors. Comparatively, 93.3% of E*TRADE Financial shares are owned by institutional investors. 14.1% of Access National shares are owned by insiders. Comparatively, 0.1% of E*TRADE Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Access National and E*TRADE Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Access National 15.48% 7.79% 1.16%
E*TRADE Financial 28.40% 11.64% 1.18%

Dividends

Access National pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. E*TRADE Financial does not pay a dividend. Access National pays out 37.3% of its earnings in the form of a dividend.

Summary

E*TRADE Financial beats Access National on 14 of the 17 factors compared between the two stocks.

Access National Company Profile

Access National Corporation operates as the bank holding company for Access National Bank that provides credit, deposit, mortgage, and wealth management services to small and medium sized businesses, professionals, and associated individuals primarily in the greater Washington, D.C. Metropolitan Area. The company operates through three segments: Commercial Banking, Mortgage Banking, and Wealth Management. It offers checking, savings/money market, sweep, and zero balance accounts; investment management, financial planning, lockbox payment processing, payroll, and retirement account services, as well as certificates of deposit, qualified and employer sponsored retirement plans, and overnight investments; and loan products, including residential mortgage, asset secured, business investment, construction, and lot and land loans. In addition, the company provides lending products, such as accounts receivable lines of credit and collection; growth capital term loans; partner buyout funding; business acquisition, franchise, and equipment financing, as well as debt re-financing; and commercial mortgage and construction, and SBA preferred lender loans. The company operates from 15 banking centers located in Chantilly, Tysons, Reston, Leesburg, Manassas, Arlington, Alexandria, Ashburn, Gainesville, Marshall, Middleburg, Purcellville, Richmond, and Warrenton in Virginia. Access National Corporation was founded in 1999 and is headquartered in Reston, Virginia.

E*TRADE Financial Company Profile

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily sweep deposits to retail investors; Federal Deposit Insurance Corporation insurance services; clearing and settlement services; investment advisory services; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients. The company provides its services to customers through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in person through 30 regional financial centers in the United States. E*TRADE Financial Corporation was founded in 1982 and is headquartered in New York, New York.

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