Financial Analysis: First Commonwealth Financial (NYSE:FCF) versus Mvb Financial (NASDAQ:MVBF)

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

Dividends

First Commonwealth Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. First Commonwealth Financial pays out 37.1% of its earnings in the form of a dividend. Mvb Financial pays out 31.2% 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 Commonwealth Financial has raised its dividend for 9 consecutive years. First Commonwealth Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for First Commonwealth Financial and Mvb Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Commonwealth Financial	0	3	3	0	2.50
Mvb Financial	0	2	4	0	2.67

First Commonwealth Financial presently has a consensus price target of $20.33, indicating a potential upside of 3.19%. Mvb Financial has a consensus price target of $31.25, indicating a potential upside of 12.57%. Given Mvb Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Mvb Financial is more favorable than First Commonwealth Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Commonwealth Financial	21.19%	10.56%	1.32%
Mvb Financial	13.98%	2.54%	0.25%

Earnings & Valuation

This table compares First Commonwealth Financial and Mvb Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Commonwealth Financial	$729.51 million	2.75	$152.30 million	$1.51	13.05
Mvb Financial	$200.74 million	1.78	$26.94 million	$2.18	12.73

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

Risk & Volatility

First Commonwealth Financial has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Mvb Financial has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

72.6% of First Commonwealth Financial shares are held by institutional investors. Comparatively, 52.7% of Mvb Financial shares are held by institutional investors. 1.9% of First Commonwealth Financial shares are held by company insiders. Comparatively, 9.9% of Mvb Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

First Commonwealth Financial beats Mvb Financial on 10 of the 17 factors compared between the two stocks.

About First Commonwealth Financial

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health 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, as well as ACH origination services. In addition, it offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.

About Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.