Critical Contrast: First Financial Corporation Indiana (THFF) versus Its Peers

First Financial Corporation Indiana (NASDAQ:THFF) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare First Financial Corporation Indiana to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Earnings and Valuation

This table compares First Financial Corporation Indiana and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Financial Corporation Indiana	$347.56 million	$79.21 million	10.00
First Financial Corporation Indiana Competitors	$9.96 billion	$2.42 billion	21.06

First Financial Corporation Indiana’s peers have higher revenue and earnings than First Financial Corporation Indiana. First Financial Corporation Indiana is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

First Financial Corporation Indiana has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, First Financial Corporation Indiana’s peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Financial Corporation Indiana	24.45%	13.84%	1.52%
First Financial Corporation Indiana Competitors	15.62%	9.43%	0.93%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Financial Corporation Indiana and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Corporation Indiana	0	4	1	1	2.50
First Financial Corporation Indiana Competitors	7494	30254	27863	1490	2.35

First Financial Corporation Indiana currently has a consensus target price of $87.25, suggesting a potential upside of 13.33%. As a group, “Banks” companies have a potential upside of 14.38%. Given First Financial Corporation Indiana’s peers higher possible upside, analysts plainly believe First Financial Corporation Indiana has less favorable growth aspects than its peers.

Institutional & Insider Ownership

72.7% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 5.0% of First Financial Corporation Indiana shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

First Financial Corporation Indiana pays an annual dividend of $2.24 per share and has a dividend yield of 2.9%. First Financial Corporation Indiana pays out 29.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. First Financial Corporation Indiana has raised its dividend for 2 consecutive years. First Financial Corporation Indiana lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

First Financial Corporation Indiana peers beat First Financial Corporation Indiana on 9 of the 15 factors compared.

First Financial Corporation Indiana Company Profile

First Financial Corporation is a bank holding company headquartered in Terre Haute, Indiana. Its principal subsidiary, First Financial Bank, provides banking and financial services to individuals, businesses and organizations. The bank offers consumer and commercial deposit accounts, lending, mortgage services, and trust and wealth management services. Its regional footprint includes communities in Indiana, Illinois and Kentucky. First Financial Bank traces its roots to 1834 and has grown from an Indiana-based institution into a regional bank.