Contrasting First Financial Corporation Indiana (NASDAQ:THFF) and Enterprise Financial Services (NASDAQ:EFSC)

First Financial Corporation Indiana (NASDAQ:THFF) and Enterprise Financial Services (NASDAQ:EFSC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

First Financial Corporation Indiana has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Enterprise Financial Services has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

72.7% of First Financial Corporation Indiana shares are held by institutional investors. Comparatively, 72.2% of Enterprise Financial Services shares are held by institutional investors. 3.7% of First Financial Corporation Indiana shares are held by company insiders. Comparatively, 2.3% of Enterprise Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for First Financial Corporation Indiana and Enterprise Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Corporation Indiana	0	2	2	0	2.50
Enterprise Financial Services	0	1	3	0	2.75

First Financial Corporation Indiana presently has a consensus price target of $58.00, indicating a potential upside of 8.78%. Enterprise Financial Services has a consensus price target of $65.67, indicating a potential upside of 25.39%. Given Enterprise Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe Enterprise Financial Services is more favorable than First Financial Corporation Indiana.

Dividends

First Financial Corporation Indiana pays an annual dividend of $2.04 per share and has a dividend yield of 3.8%. Enterprise Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. First Financial Corporation Indiana pays out 32.7% of its earnings in the form of a dividend. Enterprise Financial Services pays out 24.1% 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 Financial Corporation Indiana has raised its dividend for 2 consecutive years and Enterprise Financial Services has raised its dividend for 11 consecutive years.

Valuation & Earnings

This table compares First Financial Corporation Indiana and Enterprise Financial Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Corporation Indiana	$307.51 million	2.05	$47.28 million	$6.24	8.54
Enterprise Financial Services	$920.75 million	2.10	$185.27 million	$5.14	10.19

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

Profitability

This table compares First Financial Corporation Indiana and Enterprise Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Corporation Indiana	21.70%	12.99%	1.33%
Enterprise Financial Services	19.98%	10.98%	1.25%

Summary

Enterprise Financial Services beats First Financial Corporation Indiana on 10 of the 17 factors compared between the two stocks.

About First Financial Corporation Indiana

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 Enterprise Financial Services

Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.