Head to Head Analysis: First Commonwealth Financial (NYSE:FCF) & First Us Bancsh (NASDAQ:FUSB)

First Us Bancsh (NASDAQ:FUSB) and First Commonwealth Financial (NYSE:FCF) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares First Us Bancsh and First Commonwealth Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$62.99 million	1.45	$5.99 million	$1.32	12.56
First Commonwealth Financial	$545.72 million	3.91	$152.30 million	$1.63	12.95

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

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. First Commonwealth Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. First Us Bancsh pays out 21.2% of its earnings in the form of a dividend. First Commonwealth Financial pays out 34.4% 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. First Us Bancsh has raised its dividend for 3 consecutive years and First Commonwealth Financial has raised its dividend for 9 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 72.6% of First Commonwealth Financial shares are held by institutional investors. 12.1% of First Us Bancsh shares are held by insiders. Comparatively, 1.9% of First Commonwealth Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

First Us Bancsh has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, First Commonwealth Financial has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Us Bancsh and First Commonwealth Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
First Commonwealth Financial	0	3	4	0	2.57

First Commonwealth Financial has a consensus price target of $24.25, indicating a potential upside of 14.91%. Given First Commonwealth Financial’s stronger consensus rating and higher probable upside, analysts plainly believe First Commonwealth Financial is more favorable than First Us Bancsh.

Profitability

This table compares First Us Bancsh and First Commonwealth Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	12.10%	7.41%	0.67%
First Commonwealth Financial	22.62%	10.79%	1.37%

Summary

First Commonwealth Financial beats First Us Bancsh on 15 of the 17 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About First Commonwealth Financial

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. In addition, it offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.