Head to Head Comparison: First Business Financial Services (NASDAQ:FBIZ) versus First Financial Bancorp. (NASDAQ:FFBC)

First Business Financial Services (NASDAQ:FBIZ) and First Financial Bancorp. (NASDAQ:FFBC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility & Risk

First Business Financial Services has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Business Financial Services	17.59%	14.22%	1.17%
First Financial Bancorp.	19.41%	10.57%	1.42%

Dividends

First Business Financial Services pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. First Financial Bancorp. pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. First Business Financial Services pays out 20.6% of its earnings in the form of a dividend. First Financial Bancorp. pays out 40.0% 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 Business Financial Services has increased its dividend for 13 consecutive years and First Financial Bancorp. has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for First Business Financial Services and First Financial Bancorp., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Business Financial Services	0	0	3	0	3.00
First Financial Bancorp.	0	3	2	0	2.40

First Business Financial Services presently has a consensus target price of $59.67, suggesting a potential upside of 15.21%. First Financial Bancorp. has a consensus target price of $29.40, suggesting a potential upside of 13.25%. Given First Business Financial Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe First Business Financial Services is more favorable than First Financial Bancorp..

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Business Financial Services	$262.38 million	1.64	$44.24 million	$5.62	9.22
First Financial Bancorp.	$1.62 billion	1.53	$228.83 million	$2.50	10.38

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

Insider & Institutional Ownership

60.1% of First Business Financial Services shares are owned by institutional investors. Comparatively, 77.2% of First Financial Bancorp. shares are owned by institutional investors. 5.1% of First Business Financial Services shares are owned by company insiders. Comparatively, 1.1% of First Financial Bancorp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

First Business Financial Services beats First Financial Bancorp. on 9 of the 17 factors compared between the two stocks.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; 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 commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.