Financial Survey: Jeffersonville Bancorp (OTCMKTS:JFBC) versus First Commonwealth Financial (NYSE:FCF)

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

Earnings and Valuation

This table compares Jeffersonville Bancorp and First Commonwealth Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jeffersonville Bancorp $27.45 million N/A $9.30 million $2.74 6.20
First Commonwealth Financial $626.61 million 2.18 $157.06 million $1.54 8.67

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

Dividends

Jeffersonville Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. First Commonwealth Financial pays an annual dividend of $0.50 per share and has a dividend yield of 3.7%. Jeffersonville Bancorp pays out 21.9% of its earnings in the form of a dividend. First Commonwealth Financial pays out 32.5% 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 Commonwealth Financial has increased its dividend for 7 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Jeffersonville Bancorp and First Commonwealth Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jeffersonville Bancorp 0 0 0 0 N/A
First Commonwealth Financial 0 1 2 0 2.67

First Commonwealth Financial has a consensus price target of $14.75, suggesting a potential upside of 10.49%. Given First Commonwealth Financial’s higher probable upside, analysts clearly believe First Commonwealth Financial is more favorable than Jeffersonville Bancorp.

Risk and Volatility

Jeffersonville Bancorp has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, First Commonwealth Financial has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

66.7% of First Commonwealth Financial shares are held by institutional investors. 8.4% of Jeffersonville Bancorp shares are held by insiders. Comparatively, 1.9% of First Commonwealth Financial 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 Jeffersonville Bancorp and First Commonwealth Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jeffersonville Bancorp N/A 16.91% 1.68%
First Commonwealth Financial 25.07% 13.78% 1.52%

Summary

First Commonwealth Financial beats Jeffersonville Bancorp on 10 of the 15 factors compared between the two stocks.

About Jeffersonville Bancorp

(Get Free Report)

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, installment, debt restructures, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, New York.

About First Commonwealth Financial

(Get Free Report)

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. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

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