Head-To-Head Analysis: First Commonwealth Financial (NYSE:FCF) versus First National of Nebraska (OTCMKTS:FINN)

First Commonwealth Financial (NYSE:FCF) and First National of Nebraska (OTCMKTS:FINN) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for First Commonwealth Financial and First National of Nebraska, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Commonwealth Financial	0	3	3	0	2.50
First National of Nebraska	0	0	0	0	0.00

First Commonwealth Financial presently has a consensus price target of $18.92, suggesting a potential upside of 17.71%. Given First Commonwealth Financial’s stronger consensus rating and higher probable upside, research analysts clearly believe First Commonwealth Financial is more favorable than First National of Nebraska.

Risk & Volatility

First Commonwealth Financial has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Institutional and Insider Ownership

72.6% of First Commonwealth Financial shares are held by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are held by institutional investors. 2.2% of First Commonwealth Financial shares are held by insiders. Comparatively, 41.7% of First National of Nebraska shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

First Commonwealth Financial pays an annual dividend of $0.54 per share and has a dividend yield of 3.4%. First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.3%. First Commonwealth Financial pays out 40.3% of its earnings in the form of a dividend. First Commonwealth Financial has increased its dividend for 9 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Commonwealth Financial and First National of Nebraska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Commonwealth Financial	20.38%	10.36%	1.22%
First National of Nebraska	N/A	N/A	N/A

Earnings and Valuation

This table compares First Commonwealth Financial and First National of Nebraska”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Commonwealth Financial	$479.86 million	3.41	$142.57 million	$1.34	11.99
First National of Nebraska	$2.78 billion	1.24	$227.44 million	N/A	N/A

First National of Nebraska has higher revenue and earnings than First Commonwealth Financial.

Summary

First Commonwealth Financial beats First National of Nebraska on 11 of the 15 factors compared between the two stocks.

About First Commonwealth Financial

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. In addition, it offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.

About First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.