Head-To-Head Contrast: Westamerica Bancorporation (NASDAQ:WABC) & First Interstate BancSystem (NASDAQ:FIBK)

First Interstate BancSystem (NASDAQ:FIBK) and Westamerica Bancorporation (NASDAQ:WABC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Dividends

First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.1%. Westamerica Bancorporation pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. First Interstate BancSystem pays out 57.8% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 42.3% 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. Westamerica Bancorporation has increased its dividend for 34 consecutive years.

Institutional & Insider Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. Comparatively, 81.9% of Westamerica Bancorporation shares are held by institutional investors. 8.0% of First Interstate BancSystem shares are held by company insiders. Comparatively, 5.9% of Westamerica Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares First Interstate BancSystem and Westamerica Bancorporation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$1.05 billion	3.34	$302.10 million	$3.25	11.33
Westamerica Bancorporation	$251.90 million	5.46	$116.17 million	$4.54	13.10

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

Risk and Volatility

First Interstate BancSystem has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares First Interstate BancSystem and Westamerica Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	23.63%	9.55%	1.22%
Westamerica Bancorporation	41.71%	12.31%	1.88%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for First Interstate BancSystem and Westamerica Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	3	3	2	0	1.88
Westamerica Bancorporation	0	2	0	0	2.00

First Interstate BancSystem currently has a consensus price target of $36.83, suggesting a potential upside of 0.01%. Westamerica Bancorporation has a consensus price target of $64.00, suggesting a potential upside of 7.60%. Given Westamerica Bancorporation’s stronger consensus rating and higher probable upside, analysts clearly believe Westamerica Bancorporation is more favorable than First Interstate BancSystem.

Summary

Westamerica Bancorporation beats First Interstate BancSystem on 10 of the 17 factors compared between the two stocks.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.

About Westamerica Bancorporation

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.