Head to Head Contrast: First Foundation (NASDAQ:FFWM) vs. Ameris Bancorp (NASDAQ:ABCB)

Ameris Bancorp (NASDAQ:ABCB) and First Foundation (NASDAQ:FFWM) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Volatility & Risk

Ameris Bancorp has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, First Foundation has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Dividends

Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. First Foundation pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Ameris Bancorp pays out 13.8% of its earnings in the form of a dividend. First Foundation pays out -2.0% 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.

Earnings & Valuation

This table compares Ameris Bancorp and First Foundation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameris Bancorp	$1.16 billion	4.50	$358.68 million	$5.78	13.16
First Foundation	$196.20 million	2.60	-$92.41 million	($1.96)	-3.15

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ameris Bancorp and First Foundation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameris Bancorp	0	2	5	0	2.71
First Foundation	0	1	3	0	2.75

Ameris Bancorp presently has a consensus target price of $78.57, suggesting a potential upside of 3.29%. First Foundation has a consensus target price of $6.58, suggesting a potential upside of 6.77%. Given First Foundation’s stronger consensus rating and higher possible upside, analysts clearly believe First Foundation is more favorable than Ameris Bancorp.

Institutional & Insider Ownership

91.6% of Ameris Bancorp shares are held by institutional investors. Comparatively, 73.1% of First Foundation shares are held by institutional investors. 5.4% of Ameris Bancorp shares are held by insiders. Comparatively, 9.5% of First Foundation shares are held by 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.

Profitability

This table compares Ameris Bancorp and First Foundation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameris Bancorp	21.46%	9.57%	1.32%
First Foundation	-13.94%	-0.73%	-0.05%

Summary

Ameris Bancorp beats First Foundation on 12 of the 16 factors compared between the two stocks.

About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.

About First Foundation

First Foundation Inc., through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States. The company operates in two segments, Banking and Wealth Management. It offers a range of deposit products, including personal and business checking accounts, savings accounts, interest-bearing demand deposit accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, commercial term loans, and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. The company also provides various specialized services comprising trust services, online and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, it offers investment management and financial planning services; financial, investment, and economic advisory and related services; and treasury management services, such as bill pay, check/payee/ACH positive pay, wire origination, internal and external transfers, account reconciliation reporting, mobile deposit, lockbox, cash vault services and merchant processing. Further, the company provides support services, including the processing and transmission of financial and economic data for charitable organizations. It operates through a network of branch offices and loan production offices. The company was founded in 1985 and is headquartered in Dallas, Texas.