Critical Survey: First Financial Bancorp (FFBC) versus Farmers And Merchants Bank of Long Beach (FMBL)

First Financial Bancorp (NASDAQ:FFBC) and Farmers And Merchants Bank of Long Beach (OTCMKTS:FMBL) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Dividends

First Financial Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Farmers And Merchants Bank of Long Beach pays an annual dividend of $92.00 per share and has a dividend yield of 1.1%. First Financial Bancorp pays out 49.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares First Financial Bancorp and Farmers And Merchants Bank of Long Beach’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Financial Bancorp $409.21 million 6.58 $96.78 million $1.61 17.08
Farmers And Merchants Bank of Long Beach $267.86 million 4.04 $28.37 million N/A N/A

First Financial Bancorp has higher revenue and earnings than Farmers And Merchants Bank of Long Beach.

Volatility and Risk

First Financial Bancorp has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Farmers And Merchants Bank of Long Beach has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for First Financial Bancorp and Farmers And Merchants Bank of Long Beach, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Bancorp 1 4 3 0 2.25
Farmers And Merchants Bank of Long Beach 0 0 0 0 N/A

First Financial Bancorp currently has a consensus target price of $31.43, indicating a potential upside of 14.29%. Given First Financial Bancorp’s higher possible upside, research analysts clearly believe First Financial Bancorp is more favorable than Farmers And Merchants Bank of Long Beach.

Insider and Institutional Ownership

72.7% of First Financial Bancorp shares are owned by institutional investors. Comparatively, 0.8% of Farmers And Merchants Bank of Long Beach shares are owned by institutional investors. 3.4% of First Financial Bancorp shares are owned by company insiders. Comparatively, 12.2% of Farmers And Merchants Bank of Long Beach shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares First Financial Bancorp and Farmers And Merchants Bank of Long Beach’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Bancorp 25.08% 11.70% 1.52%
Farmers And Merchants Bank of Long Beach 26.53% 26.78% 2.63%

Summary

First Financial Bancorp beats Farmers And Merchants Bank of Long Beach on 9 of the 14 factors compared between the two stocks.

About First Financial Bancorp

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and other banking, and banking-related services to individuals and businesses in Ohio, Indiana, and Kentucky. The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property or commercial property; commercial and industrial loans for various purposes, including inventory, receivables, and equipment; 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 a range of trust and wealth management services; and long-term, lease, and equipment financing services. As of December 31, 2017, it operated 94 banking centers. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

About Farmers And Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in California. The company's products and services include demand and time deposits; commercial real estate, construction, and commercial business loans; and financing for residential loans comprising single-family and multifamily loans. Its personal banking products and services include checking, savings, Christmas club, health savings, money market, and CD accounts; retirement plans, online and mobile banking, and other services; and credit and loans, such as credit cards, home loans, and escrow services. The company's business banking products and services comprise banking services, business checking, money market accounts, retirement plans, business savings, CDs, online banking, mobile banking, merchant services, payroll services, deposit lockbox, remote deposit capture, and other services; and credit and loans, including business credit cards, small business loans, commercial loans, real estate and construction loans, and lines of credit. As of December 31, 2016, it operated 24 branches in Los Angeles County and Orange County. The company was founded in 1907 and is headquartered in Long Beach, California. Farmers & Merchants Bank of Long Beach is a subsidiary of Palomar Enterprises, LLC.

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