Head-To-Head Comparison: First Financial Bancorp. (NASDAQ:FFBC) and AmeriServ Financial (NASDAQ:ASRV)

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

Valuation & Earnings

This table compares AmeriServ Financial and First Financial Bancorp.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AmeriServ Financial	$88.34 million	0.93	$5.61 million	$0.51	9.47
First Financial Bancorp.	$1.26 billion	2.72	$255.60 million	$2.83	11.54

First Financial Bancorp. has higher revenue and earnings than AmeriServ Financial. AmeriServ Financial 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.

Volatility and Risk

AmeriServ Financial has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AmeriServ Financial	9.51%	7.13%	0.58%
First Financial Bancorp.	20.77%	11.13%	1.49%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AmeriServ Financial	0	0	1	0	3.00
First Financial Bancorp.	0	4	4	0	2.50

First Financial Bancorp. has a consensus price target of $33.67, indicating a potential upside of 3.05%. Given First Financial Bancorp.’s higher possible upside, analysts clearly believe First Financial Bancorp. is more favorable than AmeriServ Financial.

Dividends

AmeriServ Financial pays an annual dividend of $0.12 per share and has a dividend yield of 2.5%. First Financial Bancorp. pays an annual dividend of $1.04 per share and has a dividend yield of 3.2%. AmeriServ Financial pays out 23.5% of its earnings in the form of a dividend. First Financial Bancorp. pays out 36.7% 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. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

31.5% of AmeriServ Financial shares are held by institutional investors. Comparatively, 77.2% of First Financial Bancorp. shares are held by institutional investors. 7.9% of AmeriServ Financial shares are held by company insiders. Comparatively, 1.1% of First Financial Bancorp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

First Financial Bancorp. beats AmeriServ Financial on 14 of the 17 factors compared between the two stocks.

About AmeriServ Financial

AmeriServ Financial, Inc. is a holding company, which engages in the provision of consumer, mortgage and commercial financial products and services through its subsidiary. It operates through the following segments: Community Banking, Wealth Management, and Investment or Parent. The Community Banking segment includes both retail and commercial banking activities. The Wealth Management segment involves in the operations of a Trust Company, West Chester Capital Advisors an investment advisory firm, and Financial Services. The Investment or Parent segment offers investment securities, borrowing activities, and general corporate expenses. The company was founded in January 1983 and is headquartered in Johnstown, PA.

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.