Head to Head Comparison: First Financial (NASDAQ:THFF) vs. Pacific Premier Bancorp (NASDAQ:PPBI)

First Financial (NASDAQ:THFF) and Pacific Premier Bancorp (NASDAQ:PPBI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

First Financial pays an annual dividend of $2.04 per share and has a dividend yield of 3.8%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.9%. First Financial pays out 44.2% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Financial has increased its dividend for 2 consecutive years.

Profitability

This table compares First Financial and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial	15.37%	8.77%	0.93%
Pacific Premier Bancorp	17.54%	5.43%	0.87%

Earnings and Valuation

This table compares First Financial and Pacific Premier Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial	$231.89 million	2.71	$47.28 million	$4.62	11.47
Pacific Premier Bancorp	$541.46 million	3.99	$158.80 million	$1.52	14.65

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Financial and Pacific Premier Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial	0	1	2	0	2.67
Pacific Premier Bancorp	0	3	1	0	2.25

First Financial presently has a consensus price target of $55.67, indicating a potential upside of 5.03%. Pacific Premier Bancorp has a consensus price target of $27.25, indicating a potential upside of 22.36%. Given Pacific Premier Bancorp’s higher probable upside, analysts clearly believe Pacific Premier Bancorp is more favorable than First Financial.

Risk and Volatility

First Financial has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

72.7% of First Financial shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 3.7% of First Financial shares are owned by insiders. Comparatively, 2.3% of Pacific Premier Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Pacific Premier Bancorp beats First Financial on 9 of the 17 factors compared between the two stocks.

About First Financial

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.

About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.