Comparing First Foundation (FFWM) & The Competition

First Foundation (NASDAQ: FFWM) is one of 331 publicly-traded companies in the “Banks” industry, but how does it contrast to its peers? We will compare First Foundation to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares First Foundation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Foundation 19.62% 10.69% 0.83%
First Foundation Competitors 19.01% 8.78% 0.94%

Insider & Institutional Ownership

52.4% of First Foundation shares are held by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are held by institutional investors. 18.5% of First Foundation shares are held by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for First Foundation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Foundation 0 1 2 0 2.67
First Foundation Competitors 2082 8253 8360 323 2.36

First Foundation currently has a consensus price target of $19.50, suggesting a potential upside of 5.35%. As a group, “Banks” companies have a potential downside of 7.83%. Given First Foundation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe First Foundation is more favorable than its peers.

Earnings and Valuation

This table compares First Foundation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
First Foundation $138.07 million N/A 20.12
First Foundation Competitors N/A N/A 19.50

First Foundation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

First Foundation has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, First Foundation’s peers have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Summary

First Foundation beats its peers on 9 of the 12 factors compared.

About First Foundation

First Foundation Inc. is a financial services holding company that provides a platform of personalized financial services to high net-worth individuals and their families, family businesses and other affiliated organizations. The Company conducts its operations through its subsidiaries, First Foundation Advisors (FFA) and First Foundation Bank (FFB), and First Foundation Insurance Services (FFIS), a subsidiary of FFB. The Company’s segments include Banking, Investment Management and Wealth Planning (Wealth Management), and Other. The Banking segment includes the operations of FFB and FFIS, and Wealth Management segment includes the operations of FFA. The Company’s integrated platform provides investment management, wealth planning, consulting, trust, banking products and services, life insurance services and property and casualty insurance services to meet the financial needs of its clients.

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