WesBanco (NASDAQ: WSBC) and First Community Financial Partners (NASDAQ:FCFP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

59.1% of WesBanco shares are held by institutional investors. Comparatively, 18.0% of First Community Financial Partners shares are held by institutional investors. 4.1% of WesBanco shares are held by company insiders. Comparatively, 24.6% of First Community Financial Partners shares are held 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.

Profitability

This table compares WesBanco and First Community Financial Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WesBanco 24.73% 7.66% 1.07%
First Community Financial Partners 29.40% 11.65% 1.05%

Dividends

WesBanco pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. First Community Financial Partners does not pay a dividend. WesBanco pays out 44.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares WesBanco and First Community Financial Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WesBanco $367.60 million 4.86 $86.63 million $2.34 17.35
First Community Financial Partners N/A N/A N/A $0.70 18.43

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for WesBanco and First Community Financial Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WesBanco 0 5 2 0 2.29
First Community Financial Partners 0 1 0 0 2.00

WesBanco currently has a consensus price target of $42.00, suggesting a potential upside of 3.45%. First Community Financial Partners has a consensus price target of $13.00, suggesting a potential upside of 0.78%. Given WesBanco’s stronger consensus rating and higher possible upside, equities analysts plainly believe WesBanco is more favorable than First Community Financial Partners.

Summary

WesBanco beats First Community Financial Partners on 8 of the 12 factors compared between the two stocks.

WesBanco Company Profile

WesBanco, Inc. (WesBanco) is a bank holding company. The Company offers a range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco offers its services through two segments: community banking, which offers services, such as commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and trust and investment services, which offers trust services, as well as various alternative investment products, including mutual funds. The Community Banking segment also offers insurance and securities brokerage services, among others. As of December 31, 2016, WesBanco operated one commercial bank, WesBanco Bank, Inc. through 174 branches and 163 automated teller machines (ATMs) located in West Virginia, Ohio, western Pennsylvania, Kentucky and southern Indiana.

First Community Financial Partners Company Profile

First Community Financial Partners, Inc. (First Community) is a bank holding company. The Company has a banking subsidiary, First Community Financial Bank (the Bank). The Bank is a full-service community bank principally engaged in the business of commercial, family and personal banking. The Bank offers customers a range of loan, deposit, and other financial products and services. The Bank also offers customers a range of financial products and services that are related or ancillary to loans and deposits, including cash management, funds transfers, bill payment and other online banking transactions, automated teller machines and safe deposit boxes. The Bank’s loan portfolio consists primarily of non-residential real estate loans, which include owner occupied commercial real estate and investor commercial real estate, multi-family, construction and land development loans.

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