Head to Head Comparison: First Commonwealth Financial (NYSE:FCF) & SmartFinancial (NASDAQ:SMBK)

First Commonwealth Financial (NYSE:FCFGet Free Report) and SmartFinancial (NASDAQ:SMBKGet Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for First Commonwealth Financial and SmartFinancial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial 0 0 2 0 3.00
SmartFinancial 0 1 1 1 3.00

First Commonwealth Financial presently has a consensus price target of $14.75, suggesting a potential upside of 12.08%. SmartFinancial has a consensus price target of $26.50, suggesting a potential upside of 28.02%. Given SmartFinancial’s higher possible upside, analysts clearly believe SmartFinancial is more favorable than First Commonwealth Financial.

Institutional & Insider Ownership

66.7% of First Commonwealth Financial shares are held by institutional investors. Comparatively, 49.3% of SmartFinancial shares are held by institutional investors. 1.9% of First Commonwealth Financial shares are held by insiders. Comparatively, 7.8% of SmartFinancial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

First Commonwealth Financial pays an annual dividend of $0.50 per share and has a dividend yield of 3.8%. SmartFinancial pays an annual dividend of $0.32 per share and has a dividend yield of 1.5%. First Commonwealth Financial pays out 32.5% of its earnings in the form of a dividend. SmartFinancial pays out 18.9% 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 Commonwealth Financial has increased its dividend for 7 consecutive years and SmartFinancial has increased its dividend for 3 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

First Commonwealth Financial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
First Commonwealth Financial 25.07% 13.78% 1.52%
SmartFinancial 11.90% 7.73% 0.72%

Earnings & Valuation

This table compares First Commonwealth Financial and SmartFinancial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Commonwealth Financial $482.29 million 2.79 $157.06 million $1.54 8.55
SmartFinancial $152.41 million 2.31 $28.59 million $1.69 12.25

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

Summary

First Commonwealth Financial beats SmartFinancial on 11 of the 17 factors compared between the two stocks.

About First Commonwealth Financial

(Get Free Report)

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health 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. In addition, it 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. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.

About SmartFinancial

(Get Free Report)

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans; mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing leases to small and mid-size companies; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

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