Head-To-Head Review: Flushing Financial (NASDAQ:FFIC) vs. First Capital (NASDAQ:FCAP)

First Capital (NASDAQ:FCAP) and Flushing Financial (NASDAQ:FFIC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Dividends

First Capital pays an annual dividend of $1.24 per share and has a dividend yield of 2.1%. Flushing Financial pays an annual dividend of $0.88 per share and has a dividend yield of 5.6%. First Capital pays out 25.3% of its earnings in the form of a dividend. Flushing Financial pays out 163.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Capital has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

11.7% of First Capital shares are owned by institutional investors. Comparatively, 67.1% of Flushing Financial shares are owned by institutional investors. 4.0% of First Capital shares are owned by insiders. Comparatively, 5.7% of Flushing Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares First Capital and Flushing Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Capital	$65.31 million	3.02	$16.37 million	$4.90	12.02
Flushing Financial	$489.63 million	1.09	$18.88 million	$0.54	29.24

Flushing Financial has higher revenue and earnings than First Capital. First Capital is trading at a lower price-to-earnings ratio than Flushing Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

First Capital has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Flushing Financial has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares First Capital and Flushing Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Capital	25.06%	12.95%	1.34%
Flushing Financial	3.86%	5.96%	0.47%

Analyst Ratings

This is a summary of current ratings and target prices for First Capital and Flushing Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Capital	0	1	0	0	2.00
Flushing Financial	1	3	0	0	1.75

Flushing Financial has a consensus price target of $16.80, indicating a potential upside of 6.40%. Given Flushing Financial’s higher probable upside, analysts plainly believe Flushing Financial is more favorable than First Capital.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

About Flushing Financial

Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. It offers various deposit products, including checking and savings accounts, money market accounts, non-interest bearing demand accounts, NOW accounts, and certificates of deposit. The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. It operates full-service banking offices in Queens, Nassau, Suffolk, Kings, and New York counties, New York; and an internet branch under the iGObanking and BankPurely brands. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.