Critical Comparison: First Commonwealth Financial Corporation (FCF) vs. Its Rivals

First Commonwealth Financial Corporation (NYSE: FCF) is one of 344 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare First Commonwealth Financial Corporation to related companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares First Commonwealth Financial Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
First Commonwealth Financial Corporation $282.21 million $59.59 million 19.54
First Commonwealth Financial Corporation Competitors $5.42 billion $809.95 million 352.42

First Commonwealth Financial Corporation’s competitors have higher revenue and earnings than First Commonwealth Financial Corporation. First Commonwealth Financial Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares First Commonwealth Financial Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Commonwealth Financial Corporation 21.96% 9.53% 1.11%
First Commonwealth Financial Corporation Competitors 18.83% 8.77% 0.93%

Volatility and Risk

First Commonwealth Financial Corporation has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, First Commonwealth Financial Corporation’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Dividends

First Commonwealth Financial Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. First Commonwealth Financial Corporation pays out 43.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Commonwealth Financial Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial Corporation 0 2 4 0 2.67
First Commonwealth Financial Corporation Competitors 2104 8328 8412 324 2.36

First Commonwealth Financial Corporation currently has a consensus target price of $8.96, suggesting a potential downside of 38.05%. As a group, “Banks” companies have a potential downside of 8.09%. Given First Commonwealth Financial Corporation’s competitors higher possible upside, analysts clearly believe First Commonwealth Financial Corporation has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

63.0% of First Commonwealth Financial Corporation shares are held by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are held by institutional investors. 1.7% of First Commonwealth Financial Corporation 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

First Commonwealth Financial Corporation beats its competitors on 8 of the 15 factors compared.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation is a financial holding company. The Company, through its subsidiary, First Commonwealth Bank (the Bank), provides a range of consumer and commercial banking services. The Company also provides trust and wealth management services, and offers insurance products through the Bank and its other operating subsidiaries. The Bank is a Pennsylvania bank and trust company. As of December 31, 2016, the Bank operated 105 community banking offices throughout western and central Pennsylvania, 17 community banking offices in Central Ohio and loan production offices in Akron and Cleveland, Ohio. As of December 31, 2016, the Bank also operated a network of 133 automated teller machines (ATMs) at various branch offices and offsite locations. As of December 31, 2016, the Bank operated 122 community banking offices throughout western Pennsylvania and central and northern Ohio, as well as loan production offices in Akron and Cleveland, Ohio.

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