WesBanco (NASDAQ: WSBC) and First Financial Bancorp. (NASDAQ:FFBC) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
WesBanco has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, First Financial Bancorp. has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
This table compares WesBanco and First Financial Bancorp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Bancorp.||26.49%||11.22%||1.16%|
This is a breakdown of recent ratings and recommmendations for WesBanco and First Financial Bancorp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Bancorp.||1||3||3||0||2.29|
WesBanco currently has a consensus price target of $42.25, suggesting a potential downside of 0.35%. First Financial Bancorp. has a consensus price target of $29.00, suggesting a potential upside of 3.20%. Given First Financial Bancorp.’s higher possible upside, analysts plainly believe First Financial Bancorp. is more favorable than WesBanco.
WesBanco pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. First Financial Bancorp. pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. WesBanco pays out 44.6% of its earnings in the form of a dividend. First Financial Bancorp. pays out 44.4% 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.
Earnings and Valuation
This table compares WesBanco and First Financial Bancorp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WesBanco||$367.60 million||5.08||$86.63 million||$2.33||18.20|
|First Financial Bancorp.||$375.55 million||4.64||$88.52 million||$1.53||18.37|
First Financial Bancorp. has higher revenue and earnings than WesBanco. WesBanco is trading at a lower price-to-earnings ratio than First Financial Bancorp., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
59.1% of WesBanco shares are held by institutional investors. Comparatively, 77.8% of First Financial Bancorp. shares are held by institutional investors. 4.1% of WesBanco shares are held by insiders. Comparatively, 1.9% of First Financial Bancorp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
First Financial Bancorp. beats WesBanco on 11 of the 15 factors compared between the two stocks.
WesBanco, Inc. (WesBanco) is a bank holding company. The Company offers a range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco offers its services through two segments: community banking, which offers services, such as commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and trust and investment services, which offers trust services, as well as various alternative investment products, including mutual funds. The Community Banking segment also offers insurance and securities brokerage services, among others. As of December 31, 2016, WesBanco operated one commercial bank, WesBanco Bank, Inc. through 174 branches and 163 automated teller machines (ATMs) located in West Virginia, Ohio, western Pennsylvania, Kentucky and southern Indiana.
About First Financial Bancorp.
First Financial Bancorp. (First Financial) is a regional bank holding company. First Financial is engaged in the business of commercial banking and other banking and banking-related activities through its subsidiary, First Financial Bank, National Association (the Bank). The range of banking services provided by First Financial to individuals and businesses include commercial lending, real estate lending and consumer financing. It offers deposit products that include interest-bearing and non-interest-bearing accounts, time deposits and cash management services for commercial customers. First Financial’s Wealth Management division provides a range of trust and asset management services. As of December 31, 2016, it operated 102 banking centers. Its banking operating markets are located within the three state region of Ohio, Indiana and Kentucky. As of December 31, 2016, it operated 60 banking centers in Ohio, 38 banking centers in Indiana and four banking centers in Kentucky.
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