First Merchants (FRME) Competitors

First Financial Bancorp. (NASDAQ:FFBC) and First Merchants (NASDAQ:FRME) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, community ranking, analyst recommendations, dividends, valuation, earnings, media sentiment and risk.

Is FFBC or FRME a better dividend stock?

First Financial Bancorp. pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. First Merchants pays an annual dividend of $1.36 per share and has a dividend yield of 4.1%. First Financial Bancorp. pays out 37.1% of its earnings in the form of a dividend. First Merchants pays out 39.2% 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 Merchants has increased its dividend for 12 consecutive years. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility and risk, FFBC or FRME?

First Financial Bancorp. has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, First Merchants has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Do institutionals and insiders hold more shares of FFBC or FRME?

77.2% of First Financial Bancorp. shares are owned by institutional investors. Comparatively, 73.9% of First Merchants shares are owned by institutional investors. 2.0% of First Financial Bancorp. shares are owned by insiders. Comparatively, 1.3% of First Merchants shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Is FFBC or FRME more profitable?

First Financial Bancorp. has a net margin of 20.74% compared to First Financial Bancorp.'s net margin of 20.15%. First Merchants' return on equity of 11.22% beat First Financial Bancorp.'s return on equity.

Company	Net Margins	Return on Equity	Return on Assets
First Financial Bancorp.	20.74%	11.22%	1.43%
First Merchants	20.15%	10.21%	1.21%

Do analysts recommend FFBC or FRME?

First Financial Bancorp. presently has a consensus target price of $24.67, indicating a potential upside of 10.61%. First Merchants has a consensus target price of $41.25, indicating a potential upside of 24.81%. Given First Financial Bancorp.'s stronger consensus rating and higher probable upside, analysts plainly believe First Merchants is more favorable than First Financial Bancorp..

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bancorp.	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
First Merchants	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the MarketBeat Community favor FFBC or FRME?

First Merchants received 80 more outperform votes than First Financial Bancorp. when rated by MarketBeat users. Likewise, 59.73% of users gave First Merchants an outperform vote while only 46.59% of users gave First Financial Bancorp. an outperform vote.

Company	Underperform	Outperform
First Financial Bancorp.	Outperform Votes 273 46.59%	Underperform Votes 313 53.41%
First Merchants	Outperform Votes 353 59.73%	Underperform Votes 238 40.27%

Does the media favor FFBC or FRME?

In the previous week, First Merchants had 2 more articles in the media than First Financial Bancorp.. MarketBeat recorded 5 mentions for First Merchants and 3 mentions for First Financial Bancorp.. First Financial Bancorp.'s average media sentiment score of 1.79 beat First Merchants' score of 0.96 indicating that First Merchants is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
First Financial Bancorp.	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
First Merchants	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Which has preferable valuation & earnings, FFBC or FRME?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bancorp.	$1.12B	1.91	$255.86M	$2.48	8.99
First Merchants	$999.49M	1.94	$223.79M	$3.47	9.52

Summary

First Merchants beats First Financial Bancorp. on 12 of the 21 factors compared between the two stocks.