WesBanco (NASDAQ: WSBC) and First Financial Bancorp (NASDAQ:FFBC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
This table compares WesBanco and First Financial Bancorp’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|First Financial Bancorp
Institutional & Insider 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
WesBanco has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, First Financial Bancorp has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for WesBanco and First Financial Bancorp, as reported by MarketBeat.com.
||Strong Buy Ratings
|First Financial Bancorp
WesBanco presently has a consensus target price of $42.25, indicating a potential upside of 0.62%. First Financial Bancorp has a consensus target price of $29.00, indicating a potential upside of 3.76%. 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 44.4% of its earnings in the form of a dividend. First Financial Bancorp pays out 43.0% 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.
Valuation and Earnings
This table compares WesBanco and First Financial Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|First Financial Bancorp
First Financial Bancorp has higher revenue and earnings than WesBanco. First Financial Bancorp is trading at a lower price-to-earnings ratio than WesBanco, indicating that it is currently the more affordable of the two stocks.
First Financial Bancorp beats WesBanco on 10 of the 15 factors compared between the two stocks.
WesBanco Company Profile
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.
First Financial Bancorp Company Profile
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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