Analyzing Emclaire Financial (NASDAQ:EMCF) & First Commonwealth Financial (FCF)

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First Commonwealth Financial (NYSE:FCF) and Emclaire Financial (NASDAQ:EMCF) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

70.5% of First Commonwealth Financial shares are owned by institutional investors. Comparatively, 6.9% of Emclaire Financial shares are owned by institutional investors. 1.4% of First Commonwealth Financial shares are owned by insiders. Comparatively, 16.0% of Emclaire Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Commonwealth Financial $380.89 million 3.58 $109.47 million $1.10 12.45
Emclaire Financial $35.17 million 2.32 $4.21 million N/A N/A

First Commonwealth Financial has higher revenue and earnings than Emclaire Financial.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Commonwealth Financial 0 3 2 0 2.40
Emclaire Financial 0 0 0 0 N/A

First Commonwealth Financial currently has a consensus target price of $16.50, indicating a potential upside of 20.44%. Given First Commonwealth Financial’s higher probable upside, analysts plainly believe First Commonwealth Financial is more favorable than Emclaire Financial.

Volatility and Risk

First Commonwealth Financial has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Emclaire Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Dividends

First Commonwealth Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Emclaire Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. First Commonwealth Financial pays out 36.4% of its earnings in the form of a dividend. First Commonwealth Financial has raised its dividend for 2 consecutive years and Emclaire Financial has raised its dividend for 3 consecutive years. Emclaire Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Commonwealth Financial and Emclaire Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Commonwealth Financial 28.22% 11.43% 1.43%
Emclaire Financial 11.98% 7.10% 0.55%

Summary

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

About First Commonwealth Financial

First Commonwealth Financial Corporation, through its subsidiary First Commonwealth Bank, provides consumer and commercial banking services to individuals, and small and mid-sized businesses in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, 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. It also offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, stock, and bond brokerage services through a broker-dealer and insurance brokers. As of December 31, 2017, the company operated 104 community banking offices in western and central Pennsylvania; 29 community banking offices in central and northern Ohio; corporate banking centers in Pittsburgh, Pennsylvania, and central and northeast Ohio; mortgage offices in Columbus, Hudson, and Dublin, Ohio; and a network of 148 ATMs. First Commonwealth Financial Corporation was founded in 1934 and is headquartered in Indiana, Pennsylvania.

About Emclaire Financial

Emclaire Financial Corp. operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. The company's deposit products include checking, savings, and term certificate accounts; time deposits; noninterest bearing and interest bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, residential and commercial mortgages loans, home equity loans, and commercial business and commercial real estate loans; and consumer loans, such as loans for automobile purchases, home improvements not secured by real estate, capital, and other personal expenditures, as well as unsecured revolving personal lines of credit and overdraft protection. The company, through its subsidiary, Emclaire Settlement Services, LLC, also provides real estate settlement services. As of January 26, 2018, it operated through 17 retail branch offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties in Pennsylvania, as well as in Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

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