Analyzing First Financial Corporation Indiana (NASDAQ:THFF) and Carter Bankshares (NASDAQ:CARE)

Carter Bankshares (NASDAQ:CARE) and First Financial Corporation Indiana (NASDAQ:THFF) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. First Financial Corporation Indiana pays an annual dividend of $2.24 per share and has a dividend yield of 2.8%. Carter Bankshares pays out 6.9% of its earnings in the form of a dividend. First Financial Corporation Indiana pays out 31.4% 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 Financial Corporation Indiana has raised its dividend for 2 consecutive years. First Financial Corporation Indiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Carter Bankshares has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, First Financial Corporation Indiana has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Carter Bankshares and First Financial Corporation Indiana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	4	1	0	2.20
First Financial Corporation Indiana	0	4	0	1	2.40

Carter Bankshares currently has a consensus price target of $30.75, suggesting a potential downside of 3.51%. First Financial Corporation Indiana has a consensus price target of $88.00, suggesting a potential upside of 10.67%. Given First Financial Corporation Indiana’s stronger consensus rating and higher probable upside, analysts plainly believe First Financial Corporation Indiana is more favorable than Carter Bankshares.

Earnings & Valuation

This table compares Carter Bankshares and First Financial Corporation Indiana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter Bankshares	$254.63 million	2.77	$31.00 million	$5.81	5.49
First Financial Corporation Indiana	$347.56 million	2.72	$79.21 million	$7.14	11.14

First Financial Corporation Indiana has higher revenue and earnings than Carter Bankshares. Carter Bankshares is trading at a lower price-to-earnings ratio than First Financial Corporation Indiana, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

41.5% of Carter Bankshares shares are held by institutional investors. Comparatively, 72.7% of First Financial Corporation Indiana shares are held by institutional investors. 2.4% of Carter Bankshares shares are held by company insiders. Comparatively, 5.0% of First Financial Corporation Indiana shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Carter Bankshares and First Financial Corporation Indiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	36.79%	7.46%	0.73%
First Financial Corporation Indiana	23.32%	13.02%	1.43%

Summary

First Financial Corporation Indiana beats Carter Bankshares on 13 of the 18 factors compared between the two stocks.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

About First Financial Corporation Indiana

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.