Financial Review: First Financial Corporation Indiana (NASDAQ:THFF) versus First Western Financial (NASDAQ:MYFW)

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

Insider and Institutional Ownership

72.7% of First Financial Corporation Indiana shares are owned by institutional investors. Comparatively, 60.3% of First Western Financial shares are owned by institutional investors. 3.7% of First Financial Corporation Indiana shares are owned by company insiders. Comparatively, 15.5% of First Western Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares First Financial Corporation Indiana and First Western Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Corporation Indiana	$253.11 million	2.68	$47.28 million	$6.24	9.18
First Western Financial	$180.33 million	1.27	$8.47 million	$1.29	18.29

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

Profitability

This table compares First Financial Corporation Indiana and First Western Financial’s 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%
First Western Financial	6.91%	4.91%	0.42%

Volatility & Risk

First Financial Corporation Indiana has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, First Western Financial has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for First Financial Corporation Indiana and First Western Financial, 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
First Western Financial	1	2	2	0	2.20

First Financial Corporation Indiana presently has a consensus target price of $58.00, suggesting a potential upside of 1.22%. First Western Financial has a consensus target price of $24.33, suggesting a potential upside of 3.11%. Given First Western Financial’s higher possible upside, analysts plainly believe First Western Financial is more favorable than First Financial Corporation Indiana.

Summary

First Financial Corporation Indiana beats First Western Financial on 9 of the 13 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 First Western Financial

First Western Financial, Inc., a financial holding company, provides wealth advisory, private baking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, life insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high net worth individuals or families, and business and philanthropic organizations. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.