First Commonwealth Financial Corporation (NYSE: FCF) is one of 331 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare First Commonwealth Financial Corporation to similar businesses based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and price targets for First Commonwealth Financial Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial Corporation 0 2 4 0 2.67
First Commonwealth Financial Corporation Competitors 2098 8279 8378 324 2.36

First Commonwealth Financial Corporation presently has a consensus target price of $8.96, indicating a potential upside of Infinity. As a group, “Banks” companies have a potential downside of 22.77%. Given First Commonwealth Financial Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe First Commonwealth Financial Corporation is more favorable than its peers.

Risk & Volatility

First Commonwealth Financial Corporation has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, First Commonwealth Financial Corporation’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Dividends

First Commonwealth Financial Corporation pays an annual dividend of $0.32 per share. First Commonwealth Financial Corporation pays out 43.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 33.8% of their earnings in the form of a dividend. First Commonwealth Financial Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares First Commonwealth Financial Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Commonwealth Financial Corporation 21.96% 9.53% 1.11%
First Commonwealth Financial Corporation Competitors 18.82% 8.82% 0.94%

Insider & Institutional Ownership

63.0% of First Commonwealth Financial Corporation shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 1.7% of First Commonwealth Financial Corporation shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares First Commonwealth Financial Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
First Commonwealth Financial Corporation $282.21 $59.59 N/A
First Commonwealth Financial Corporation Competitors $5,447.12 $813.35 19.24

First Commonwealth Financial Corporation’s peers have higher revenue and earnings than First Commonwealth Financial Corporation. First Commonwealth Financial Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

First Commonwealth Financial Corporation beats its peers on 8 of the 15 factors compared.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation is a financial holding company. The Company, through its subsidiary, First Commonwealth Bank (the Bank), provides a range of consumer and commercial banking services. The Company also provides trust and wealth management services, and offers insurance products through the Bank and its other operating subsidiaries. The Bank is a Pennsylvania bank and trust company. As of December 31, 2016, the Bank operated 105 community banking offices throughout western and central Pennsylvania, 17 community banking offices in Central Ohio and loan production offices in Akron and Cleveland, Ohio. As of December 31, 2016, the Bank also operated a network of 133 automated teller machines (ATMs) at various branch offices and offsite locations. As of December 31, 2016, the Bank operated 122 community banking offices throughout western Pennsylvania and central and northern Ohio, as well as loan production offices in Akron and Cleveland, Ohio.

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