Financial Comparison: First Financial Corporation Indiana (NASDAQ:THFF) versus Eagle Bancorp Montana (NASDAQ:EBMT)

First Financial Corporation Indiana (NASDAQ:THFF) and Eagle Bancorp Montana (NASDAQ:EBMT) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Valuation & Earnings

This table compares First Financial Corporation Indiana and Eagle Bancorp Montana”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Corporation Indiana	$253.11 million	2.89	$47.28 million	$6.24	9.88
Eagle Bancorp Montana	$87.16 million	1.81	$9.78 million	$1.72	11.52

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

Volatility & Risk

First Financial Corporation Indiana has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Financial Corporation Indiana and Eagle Bancorp Montana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Corporation Indiana	0	2	2	1	2.80
Eagle Bancorp Montana	0	1	1	0	2.50

First Financial Corporation Indiana currently has a consensus price target of $60.00, indicating a potential downside of 2.72%. Given First Financial Corporation Indiana’s stronger consensus rating and higher possible upside, research analysts clearly believe First Financial Corporation Indiana is more favorable than Eagle Bancorp Montana.

Profitability

This table compares First Financial Corporation Indiana and Eagle Bancorp Montana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Corporation Indiana	21.70%	12.70%	1.32%
Eagle Bancorp Montana	10.76%	7.53%	0.64%

Institutional & Insider Ownership

72.7% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 35.7% of Eagle Bancorp Montana shares are owned by institutional investors. 3.7% of First Financial Corporation Indiana shares are owned by company insiders. Comparatively, 6.1% of Eagle Bancorp Montana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

First Financial Corporation Indiana pays an annual dividend of $2.24 per share and has a dividend yield of 3.6%. Eagle Bancorp Montana pays an annual dividend of $0.58 per share and has a dividend yield of 2.9%. First Financial Corporation Indiana pays out 35.9% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 33.7% 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 Corporation Indiana has raised its dividend for 2 consecutive years and Eagle Bancorp Montana has raised its dividend for 14 consecutive years.

Summary

First Financial Corporation Indiana beats Eagle Bancorp Montana on 14 of the 18 factors compared between the two stocks.

About First Financial Corporation Indiana

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.