Reviewing OceanFirst Financial (NASDAQ:OCFC) & First Financial Bancorp. (NASDAQ:FFBC)

First Financial Bancorp. (NASDAQ:FFBC) and OceanFirst Financial (NASDAQ:OCFC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Dividends

First Financial Bancorp. pays an annual dividend of $0.96 per share and has a dividend yield of 3.3%. OceanFirst Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. First Financial Bancorp. pays out 40.0% of its earnings in the form of a dividend. OceanFirst Financial pays out 48.5% 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.

Volatility and Risk

First Financial Bancorp. has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Financial Bancorp. and OceanFirst Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bancorp.	$1.62 billion	1.70	$228.83 million	$2.40	12.00
OceanFirst Financial	$692.36 million	1.49	$100.07 million	$1.65	10.70

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

Insider & Institutional Ownership

77.2% of First Financial Bancorp. shares are owned by institutional investors. Comparatively, 71.0% of OceanFirst Financial shares are owned by institutional investors. 2.0% of First Financial Bancorp. shares are owned by insiders. Comparatively, 5.0% of OceanFirst Financial 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Financial Bancorp.	18.67%	10.52%	1.38%
OceanFirst Financial	14.45%	5.75%	0.72%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bancorp.	0	2	2	0	2.50
OceanFirst Financial	0	4	1	1	2.50

First Financial Bancorp. currently has a consensus price target of $30.25, suggesting a potential upside of 5.03%. OceanFirst Financial has a consensus price target of $20.83, suggesting a potential upside of 18.04%. Given OceanFirst Financial’s higher possible upside, analysts plainly believe OceanFirst Financial is more favorable than First Financial Bancorp..

Summary

First Financial Bancorp. beats OceanFirst Financial on 11 of the 16 factors compared between the two stocks.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.