Head to Head Contrast: First Savings Financial Group (NASDAQ:FSFG) & Sturgis Bancorp (OTCMKTS:STBI)

Sturgis Bancorp (OTCMKTS:STBI) and First Savings Financial Group (NASDAQ:FSFG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sturgis Bancorp and First Savings Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturgis Bancorp	0	0	0	0	0.00
First Savings Financial Group	0	0	4	0	3.00

First Savings Financial Group has a consensus price target of $32.33, suggesting a potential downside of 1.66%. Given First Savings Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe First Savings Financial Group is more favorable than Sturgis Bancorp.

Profitability

This table compares Sturgis Bancorp and First Savings Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	12.73%	N/A	N/A
First Savings Financial Group	15.82%	11.51%	0.88%

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. First Savings Financial Group pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Sturgis Bancorp pays out 19.8% of its earnings in the form of a dividend. First Savings Financial Group pays out 19.3% 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 Savings Financial Group has increased its dividend for 12 consecutive years.

Risk and Volatility

Sturgis Bancorp has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, First Savings Financial Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sturgis Bancorp and First Savings Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$56.82 million	0.79	$2.84 million	$3.43	6.06
First Savings Financial Group	$146.37 million	1.58	$23.16 million	$3.31	9.93

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

Insider & Institutional Ownership

35.2% of First Savings Financial Group shares are owned by institutional investors. 16.0% of Sturgis Bancorp shares are owned by insiders. Comparatively, 16.1% of First Savings Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

First Savings Financial Group beats Sturgis Bancorp on 15 of the 17 factors compared between the two stocks.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

About First Savings Financial Group

First Savings Financial Group, Inc. operates as the bank holding company for First Savings Bank that provides various financial services to consumers and businesses in southern Indiana. The company operates through three segments: Core Banking, SBA Lending, and Mortgage Banking. It accepts deposits, such as checking accounts, NOW and money market accounts, regular savings accounts, and time deposits. The company also provides loans, including one-to four-family residential real estate, commercial real estate, construction, land and land development, multi-family real estate, and commercial business loans, as well as consumer loans, such as automobile and truck loans, home equity lines of credit, home improvement loans, unsecured loans, boat and mobile home loans, loans secured by savings deposits, and other personal loans. In addition, it is involved in the mortgage banking; investment activities; and the provision of property and casualty insurance products, and reinsurance to other third-party insurance captives. First Savings Financial Group, Inc. was incorporated in 2008 and is headquartered in Jeffersonville, Indiana.