First Financial Bancorp. (NASDAQ:FFBC) versus Civista Bancshares (NASDAQ:CIVB) Financial Analysis

First Financial Bancorp. (NASDAQ:FFBC) and Civista Bancshares (NASDAQ:CIVB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Insider and Institutional Ownership

77.2% of First Financial Bancorp. shares are held by institutional investors. Comparatively, 52.1% of Civista Bancshares shares are held by institutional investors. 1.1% of First Financial Bancorp. shares are held by insiders. Comparatively, 2.6% of Civista Bancshares shares are held by 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.

Profitability

This table compares First Financial Bancorp. and Civista Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bancorp.	20.64%	10.72%	1.46%
Civista Bancshares	17.42%	10.86%	1.04%

Dividends

First Financial Bancorp. pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Civista Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. First Financial Bancorp. pays out 37.0% of its earnings in the form of a dividend. Civista Bancshares pays out 25.4% 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 Bancorp. has increased its dividend for 1 consecutive years and Civista Bancshares has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Financial Bancorp. and Civista Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bancorp.	0	5	3	0	2.38
Civista Bancshares	0	5	2	0	2.29

First Financial Bancorp. currently has a consensus price target of $29.50, suggesting a potential upside of 25.30%. Civista Bancshares has a consensus price target of $24.60, suggesting a potential upside of 15.87%. Given First Financial Bancorp.’s stronger consensus rating and higher probable upside, research analysts clearly believe First Financial Bancorp. is more favorable than Civista Bancshares.

Risk & Volatility

First Financial Bancorp. has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Civista Bancshares has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Financial Bancorp. and Civista Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bancorp.	$884.98 million	2.62	$228.83 million	$2.70	8.72
Civista Bancshares	$164.03 million	2.50	$31.68 million	$2.68	7.92

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

Summary

First Financial Bancorp. beats Civista Bancshares on 13 of the 17 factors compared between the two stocks.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

About Civista Bancshares

Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services. It collects a range of customer deposits; and offers commercial and agriculture, commercial and residential real estate, farm real estate, real estate construction, consumer, and other loans, as well as letters of credit. The company also holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, Ohio.