Critical Review: First Financial Corporation Indiana (THFF) versus The Competition

First Financial Corporation Indiana (NASDAQ: THFF) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its peers? We will compare First Financial Corporation Indiana to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Insider and Institutional Ownership

53.6% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 3.6% of First Financial Corporation Indiana shares are owned by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares First Financial Corporation Indiana and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Corporation Indiana 23.48% 8.11% 1.17%
First Financial Corporation Indiana Competitors 9.30% 3.85% 2.31%

Valuation & Earnings

This table compares First Financial Corporation Indiana and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
First Financial Corporation Indiana $156.31 million $38.41 million 16.19
First Financial Corporation Indiana Competitors $11.51 billion $1.16 billion 156.84

First Financial Corporation Indiana’s peers have higher revenue and earnings than First Financial Corporation Indiana. First Financial Corporation Indiana is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

First Financial Corporation Indiana pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. First Financial Corporation Indiana pays out 35.1% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 13.3% of their earnings in the form of a dividend.

Volatility & Risk

First Financial Corporation Indiana has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, First Financial Corporation Indiana’s peers have a beta of 0.92, meaning that their average share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for First Financial Corporation Indiana and its peers, 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
First Financial Corporation Indiana Competitors 629 2313 2196 45 2.32

First Financial Corporation Indiana currently has a consensus target price of $49.00, suggesting a potential upside of 6.18%. As a group, “Property & Casualty Insurance” companies have a potential upside of 6.08%. Given First Financial Corporation Indiana’s higher probable upside, research analysts clearly believe First Financial Corporation Indiana is more favorable than its peers.

Summary

First Financial Corporation Indiana peers beat First Financial Corporation Indiana on 11 of the 15 factors compared.

About First Financial Corporation Indiana

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.

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