Validea’s Top Five Financial Stocks Based On Motley Fool – 8/7/2022

The following are the top rated Financial stocks according to Validea’s Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.

ESQUIRE FINANCIAL HOLDINGS INC (ESQ) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Esquire Financial Holdings, Inc. is a bank holding company for Esquire Bank, National Association (the Bank). The Bank is a full-service commercial bank engaged in serving the financial needs of the legal and small business communities as well as commercial and retail customers. It provides products and solutions to the legal community and their clients as well as merchant services solutions. It offers commercial loans and lines of credit, consumer loans, and real estate loans. It offers depository products, including checking, savings, money market and certificates of deposit. It provides attorney-related loans, which include commercial and consumer lending to attorneys, law firms and plaintiffs/claimants. It offers business checking and savings, business line of credit, business term loan, and cash management. It also provides lending solution, including portfolio acquisition loan, agent residual acquisition loan, working capital line of credit and merchant term loan.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: Neutral
CASH AND CASH EQUIVALENTS: PASS
“THE FOOL RATIO” (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

Detailed Analysis of ESQUIRE FINANCIAL HOLDINGS INC

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FARMERS & MERCHANTS BANCORP INC (FMAO) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Farmers & Merchants Bancorp, Inc. is a bank holding company. The Company’s primary subsidiary, The Farmers & Merchants State Bank (the Bank), is a community bank operating in Northwest Ohio and Northeast Indiana. Its other subsidiary, Farmers & Merchants Risk Management (Captive), is a captive insurance company. The Bank is engaged in commercial banking business. The Bank’s activities include commercial, agricultural and residential mortgages as well as consumer and credit card lending activities. The Bank’s main loan portfolio consists of loans made to customers in the farming industry for such things as farmland, farm equipment, livestock, and operating loans for seed, fertilizer, and feed. The Bank’s other types of lending activities include loans for home improvements and loans for such items as autos, trucks, recreational vehicles and motorcycles. The Bank also provides checking account services, as well as savings and time deposit services, such as certificates of deposits.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: Neutral
CASH AND CASH EQUIVALENTS: PASS
“THE FOOL RATIO” (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

Detailed Analysis of FARMERS & MERCHANTS BANCORP INC

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MANNING AND NAPIER INC (MN) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Motley Fool is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Manning & Napier, Inc. is an independent investment management firm. The Company provides its clients with a range of financial solutions and investment strategies, including wealth management services. The Company’s investment strategies are powered by multiple research engines, employing fundamental and quantitative approaches, and are offered as both single- and multi-asset class portfolios. The Company primarily provides investment management services to separately managed accounts, mutual funds and collective investment trust funds. The Company’s separate accounts are primarily distributed through wealth management sales channel, where its financial consultants form relationships with high-net-worth individuals, endowments, foundations, and retirement plans. Its mutual funds and collective investment trusts are primarily distributed through financial intermediaries, including brokers, financial advisors, retirement plan advisors and platform relationships.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: Neutral
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
“THE FOOL RATIO” (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

Detailed Analysis of MANNING AND NAPIER INC

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NELNET, INC. (NNI) is a mid-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Motley Fool is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Nelnet, Inc. is a diversified company that is focused on offering educational services, technology solutions, telecommunications and asset management. The Company’s segments include Loan Servicing and Systems (LSS); Education Technology, Services, and Payment Processing (ETS&PP); Communications; Asset Generation and Management (AGM), and Nelnet Bank. The LSS segment is focused on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions. The ETS&PP segment provides education services, payment technology, and community management solutions. The Communications segment is focused on providing fiber optic service directly to homes and businesses for Internet, telephone, and television services. The AGM segment includes the acquisition and management of student and other loan assets. The Nelnet Bank segment is focused on the private education loan marketplace.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: Neutral
CASH AND CASH EQUIVALENTS: FAIL
ACCOUNTS RECEIVABLE TO SALES: PASS
“THE FOOL RATIO” (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

Detailed Analysis of NELNET, INC.

Full Guru Analysis for NNI>

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AMALGAMATED BANK (AMAL) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Amalgamated Bank is a commercial bank and a chartered trust company that provides banking services. The Company offers solutions in the areas of personal banking, small business, commercial banking and institutional investing. Its product line includes residential mortgage loans, commercial and industrial loans, commercial real estate loans, multifamily mortgages, and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. It also offers online banking and bill payment services, online cash management, safe deposit box rentals, debit card and automated teller machine (ATM) card services. Its corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking.

The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: Neutral
CASH AND CASH EQUIVALENTS: FAIL
“THE FOOL RATIO” (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

Detailed Analysis of AMALGAMATED BANK

Full Guru Analysis for AMAL>

Full Factor Report for AMAL>

More details on Validea’s Motley Fool strategy

About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they’re hardly fools — at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners’ “Fool” really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.

About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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