First Commonwealth Financial (NYSE:FCF) and Standard Chartered (OTCMKTS:SCBFF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Dividends

First Commonwealth Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Standard Chartered does not pay a dividend. First Commonwealth Financial pays out 36.4% of its earnings in the form of a dividend. First Commonwealth Financial has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for First Commonwealth Financial and Standard Chartered, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial 0 3 2 0 2.40
Standard Chartered 1 1 2 0 2.25

First Commonwealth Financial presently has a consensus target price of $16.50, indicating a potential upside of 22.49%. Given First Commonwealth Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe First Commonwealth Financial is more favorable than Standard Chartered.

Volatility and Risk

First Commonwealth Financial has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Commonwealth Financial and Standard Chartered’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Commonwealth Financial $380.89 million 3.49 $107.50 million $1.10 12.25
Standard Chartered $20.68 billion 1.39 $1.22 billion $0.46 18.96

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

Profitability

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

Net Margins Return on Equity Return on Assets
First Commonwealth Financial 28.22% 11.43% 1.43%
Standard Chartered N/A N/A N/A

Insider & Institutional Ownership

68.2% of First Commonwealth Financial shares are held by institutional investors. 1.5% of First Commonwealth Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First Commonwealth Financial beats Standard Chartered on 11 of the 16 factors compared between the two stocks.

First Commonwealth Financial Company Profile

First Commonwealth Financial Corporation, through its subsidiaries, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, 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. It also 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. As of March 4, 2019, the company operated 137 community banking offices in western and central Pennsylvania, as well as northeastern, central, and southwestern Ohio. It also leases 3 mortgage loan production offices and 3 corporate loan production offices, as well as operates a network of 150 automated teller machines. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

Standard Chartered Company Profile

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East. The company operates through Corporate & Institutional Banking, Retail banking, Commercial Banking, and Private Banking segments. It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management that include investments, portfolio management, insurance and advices, and planning services; and transaction banking services, such as cash management, payments and transactions, securities services, and trade financing products. The company also provides corporate finance products and services that include structured and project financing, strategic advising, and mergers and acquisitions; and financial market services, such as investment, risk management, and debt capital markets. It serves corporations, financial institutions, governments, high net worth individuals, small businesses, mid-sized companies, and individuals. The company operates through approximately 1,026 branches. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

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