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

Insider & Institutional Ownership

54.1% of First Financial Corporation Indiana shares are held by institutional investors. Comparatively, 31.0% of Erie Indemnity shares are held by institutional investors. 3.6% of First Financial Corporation Indiana shares are held by insiders. Comparatively, 46.8% of Erie Indemnity shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares First Financial Corporation Indiana and Erie Indemnity’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Financial Corporation Indiana $136.87 million 4.32 $34.22 million $2.80 17.29
Erie Indemnity $1.65 billion 3.78 $303.02 million $3.99 29.88

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

Profitability

This table compares First Financial Corporation Indiana and Erie Indemnity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Corporation Indiana 23.36% 8.06% 1.15%
Erie Indemnity 12.73% 25.11% 13.76%

Dividends

First Financial Corporation Indiana pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Erie Indemnity pays an annual dividend of $3.13 per share and has a dividend yield of 2.6%. First Financial Corporation Indiana pays out 35.7% of its earnings in the form of a dividend. Erie Indemnity pays out 78.4% 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 Corporation Indiana has raised its dividend for 21 consecutive years.

Volatility and Risk

First Financial Corporation Indiana has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Erie Indemnity has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for First Financial Corporation Indiana and Erie Indemnity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Corporation Indiana 0 1 0 0 2.00
Erie Indemnity 0 0 0 0 N/A

First Financial Corporation Indiana presently has a consensus price target of $45.00, indicating a potential downside of 7.02%. Given First Financial Corporation Indiana’s higher probable upside, equities research analysts plainly believe First Financial Corporation Indiana is more favorable than Erie Indemnity.

Summary

Erie Indemnity beats First Financial Corporation Indiana on 8 of the 15 factors compared between the two stocks.

About First Financial Corporation Indiana

First Financial Corporation is a financial holding company. The Company, through its subsidiaries, offers financial services, including commercial, mortgage and consumer lending, lease financing, trust account services, depositor services and insurance services. The Company’s subsidiaries include First Financial Bank, N.A. (the Bank), The Morris Plan Company of Terre Haute (Morris Plan), First Chanticleer Corporation and FFB Risk Management Co., Inc. The Bank has two investment subsidiaries, Portfolio Management Specialists A (Specialists A) and Portfolio Management Specialists B (Specialists B), which holds and manages certain assets to manage various income streams and provides opportunities for capital creation as needed. The Bank’s loan portfolio includes commercial loans, residential loans and consumer loans. Its deposits include non-interest-bearing demand deposits, interest-bearing demand deposits, savings deposits, time deposits: $100,000 or more, and other time deposits.

About Erie Indemnity

Erie Indemnity Company is a management company. The Company serves as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Company’s function is to perform certain services for the Exchange relating to the sales, underwriting and issuance of policies on behalf of the Exchange. The sales related services the Company provides include agent compensation, and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written, as well as additional commissions and bonuses to agents. The underwriting services the Company provides include underwriting and policy processing expenses. It provides information technology services that supports various functions. The remaining services the Company provides include customer service and administrative costs.

Receive News & Stock Ratings for First Financial Corporation Indiana Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for First Financial Corporation Indiana and related stocks with our FREE daily email newsletter.