Financial Review: First Financial Corporation Indiana (NASDAQ:THFF) and First Financial Bancorp. (NASDAQ:FFBC)

First Financial Bancorp. (NASDAQ:FFBC) and First Financial Corporation Indiana (NASDAQ:THFF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Dividends

First Financial Bancorp. pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. First Financial Corporation Indiana pays an annual dividend of $2.24 per share and has a dividend yield of 2.9%. First Financial Bancorp. pays out 35.3% of its earnings in the form of a dividend. First Financial Corporation Indiana pays out 32.9% 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 Bancorp. has increased its dividend for 1 consecutive years and First Financial Corporation Indiana has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings for First Financial Bancorp. and First Financial Corporation Indiana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bancorp.	0	4	4	0	2.50
First Financial Corporation Indiana	0	3	0	1	2.50

First Financial Bancorp. currently has a consensus target price of $33.67, suggesting a potential downside of 0.60%. First Financial Corporation Indiana has a consensus target price of $70.00, suggesting a potential downside of 9.69%. Given First Financial Bancorp.’s higher possible upside, equities research analysts clearly believe First Financial Bancorp. is more favorable than First Financial Corporation Indiana.

Insider and Institutional Ownership

77.2% of First Financial Bancorp. shares are held by institutional investors. Comparatively, 72.7% of First Financial Corporation Indiana shares are held by institutional investors. 1.1% of First Financial Bancorp. shares are held by company insiders. Comparatively, 5.0% of First Financial Corporation Indiana shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Financial Bancorp.	20.77%	11.13%	1.49%
First Financial Corporation Indiana	22.82%	12.81%	1.39%

Risk and Volatility

First Financial Bancorp. has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, First Financial Corporation Indiana has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Financial Bancorp. and First Financial Corporation Indiana”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bancorp.	$1.26 billion	2.82	$255.60 million	$2.83	11.97
First Financial Corporation Indiana	$347.56 million	2.65	$79.21 million	$6.80	11.40

First Financial Bancorp. has higher revenue and earnings than First Financial Corporation Indiana. First Financial Corporation Indiana 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.

Summary

First Financial Bancorp. beats First Financial Corporation Indiana on 10 of the 17 factors compared between the two stocks.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

About First Financial Corporation Indiana

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.