First Foundation (FFWM) & Glacier Bancorp (GBCI) Critical Comparison

First Foundation (NASDAQ:FFWM) and Glacier Bancorp (NASDAQ:GBCI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for First Foundation and Glacier Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Foundation 0 2 3 0 2.60
Glacier Bancorp 0 4 0 0 2.00

First Foundation presently has a consensus price target of $19.90, suggesting a potential upside of 35.19%. Glacier Bancorp has a consensus price target of $42.50, suggesting a potential downside of 2.88%. Given First Foundation’s stronger consensus rating and higher possible upside, analysts clearly believe First Foundation is more favorable than Glacier Bancorp.

Dividends

Glacier Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. First Foundation does not pay a dividend. Glacier Bancorp pays out 59.4% of its earnings in the form of a dividend. Glacier Bancorp has increased its dividend for 7 consecutive years.

Profitability

This table compares First Foundation and Glacier Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Foundation 13.75% 9.64% 0.86%
Glacier Bancorp 26.36% 11.96% 1.49%

Earnings & Valuation

This table compares First Foundation and Glacier Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Foundation $175.52 million 3.73 $27.58 million $0.97 15.18
Glacier Bancorp $487.26 million 7.59 $116.37 million $1.75 25.01

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

Institutional & Insider Ownership

61.1% of First Foundation shares are owned by institutional investors. Comparatively, 82.5% of Glacier Bancorp shares are owned by institutional investors. 14.3% of First Foundation shares are owned by insiders. Comparatively, 0.4% of Glacier Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

First Foundation has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Summary

Glacier Bancorp beats First Foundation on 12 of the 17 factors compared between the two stocks.

About First Foundation

First Foundation, Inc. is a financial services company, which engages in the provision of comprehensive platform of personalized financial services to individuals, businesses, and organizations. It operates through the following segments: Banking, Wealth Management, and Other. The Banking segment offers trust management, depository accounts, commercial lending, consulting and other services. The Wealth Management segment consists of wealth consulting services that included estate planning, philanthropic guidance, and investment management for individuals and families. The Other segment includes financial position and operating results of the stand-alone holding company. First Foundation, Inc. was founded by John Avak Hakopian and Ulrich Emanuel Keller, Jr. in 1990 and is headquartered in Irvine, CA.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers deposit products, including non-interest bearing deposits, interest bearing negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; second mortgage loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination services. As of December 31, 2017, it operated in 145 locations in Montana, Idaho, Utah, Washington, Wyoming, Colorado, and Arizona. The company was incorporated in 2004 and is headquartered in Kalispell, Montana.

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