Financial Contrast: First Bank (NASDAQ:FRBA) & UniCredit (OTCMKTS:UNCRY)

UniCredit (OTCMKTS:UNCRY) and First Bank (NASDAQ:FRBA) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares UniCredit and First Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UniCredit	34.34%	20.22%	1.60%
First Bank	17.45%	9.63%	1.07%

Valuation & Earnings

This table compares UniCredit and First Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniCredit	$41.32 billion	3.57	$15.35 billion	N/A	N/A
First Bank	$245.83 million	1.91	$43.66 million	$1.69	11.05

UniCredit has higher revenue and earnings than First Bank.

Institutional and Insider Ownership

0.3% of UniCredit shares are owned by institutional investors. Comparatively, 64.9% of First Bank shares are owned by institutional investors. 13.1% of First Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for UniCredit and First Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	2	4	2	3.00
First Bank	0	2	3	0	2.60

First Bank has a consensus price target of $19.67, indicating a potential upside of 5.34%. Given First Bank’s higher possible upside, analysts clearly believe First Bank is more favorable than UniCredit.

Risk & Volatility

UniCredit has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, First Bank has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Dividends

UniCredit pays an annual dividend of $1.35 per share and has a dividend yield of 2.8%. First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. First Bank pays out 21.3% of its earnings in the form of a dividend.

Summary

UniCredit beats First Bank on 12 of the 15 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.