First Financial Corporation Indiana (NASDAQ: THFF) and W.R. Berkley Corporation (NYSE:WRB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
This is a breakdown of current ratings and price targets for First Financial Corporation Indiana and W.R. Berkley Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Corporation Indiana||0||1||0||0||2.00|
|W.R. Berkley Corporation||0||8||1||0||2.11|
First Financial Corporation Indiana currently has a consensus target price of $45.00, suggesting a potential downside of 6.83%. W.R. Berkley Corporation has a consensus target price of $66.00, suggesting a potential downside of 2.02%. Given W.R. Berkley Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe W.R. Berkley Corporation is more favorable than First Financial Corporation Indiana.
This table compares First Financial Corporation Indiana and W.R. Berkley Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Corporation Indiana||23.36%||8.06%||1.15%|
|W.R. Berkley Corporation||7.86%||7.58%||1.66%|
Volatility and Risk
First Financial Corporation Indiana has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, W.R. Berkley Corporation has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares First Financial Corporation Indiana and W.R. Berkley Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Financial Corporation Indiana||$136.87 million||4.31||$34.22 million||$2.80||17.25|
|W.R. Berkley Corporation||$7.71 billion||1.06||$1.15 billion||$4.73||14.24|
W.R. Berkley Corporation has higher revenue and earnings than First Financial Corporation Indiana. W.R. Berkley Corporation is trading at a lower price-to-earnings ratio than First Financial Corporation Indiana, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
54.1% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 71.2% of W.R. Berkley Corporation shares are owned by institutional investors. 3.6% of First Financial Corporation Indiana shares are owned by company insiders. Comparatively, 22.1% of W.R. Berkley Corporation shares are owned by company 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.
First Financial Corporation Indiana pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. W.R. Berkley Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. First Financial Corporation Indiana pays out 35.7% of its earnings in the form of a dividend. W.R. Berkley Corporation pays out 11.8% 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. First Financial Corporation Indiana has increased its dividend for 7 consecutive years. First Financial Corporation Indiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
W.R. Berkley Corporation beats First Financial Corporation Indiana on 12 of the 17 factors compared between the two stocks.
First Financial Corporation Indiana Company Profile
First Financial Corporation is a financial holding company. The Company, through its subsidiaries, offers financial services, including commercial, mortgage and consumer lending, lease financing, trust account services, depositor services and insurance services. The Company’s subsidiaries include First Financial Bank, N.A. (the Bank), The Morris Plan Company of Terre Haute (Morris Plan), First Chanticleer Corporation and FFB Risk Management Co., Inc. The Bank has two investment subsidiaries, Portfolio Management Specialists A (Specialists A) and Portfolio Management Specialists B (Specialists B), which holds and manages certain assets to manage various income streams and provides opportunities for capital creation as needed. The Bank’s loan portfolio includes commercial loans, residential loans and consumer loans. Its deposits include non-interest-bearing demand deposits, interest-bearing demand deposits, savings deposits, time deposits: $100,000 or more, and other time deposits.
W.R. Berkley Corporation Company Profile
W. R. Berkley Corporation is an insurance holding company. It operates through two segments: Insurance and Reinsurance-Global. The Insurance segment consists of its commercial insurance business operations, comprising excess and surplus lines, and admitted lines, throughout the United States, as well as its insurance business operations in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. Its Insurance segment comprises business units, such as Acadia Insurance, American Mining Insurance Group, Berkley Accident and Health, Berkley Agribusiness Risk Specialists, Berkley Aviation and Berkley Canada. Reinsurance consists of its reinsurance business on a facultative and treaty basis, in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa. Its Reinsurance segment comprises business units, such as Berkley Re America, Berkley Re Asia Pacific, Berkley Re Direct and Berkley Re UK.
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