Head-To-Head Comparison: Solera National Bancorp (OTCMKTS:SLRK) versus First Financial Bancorp. (NASDAQ:FFBC)

Solera National Bancorp (OTCMKTS:SLRK) and First Financial Bancorp. (NASDAQ:FFBC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Insider & Institutional Ownership

77.2% of First Financial Bancorp. shares are owned by institutional investors. 17.4% of Solera National Bancorp shares are owned by insiders. Comparatively, 2.0% of First Financial Bancorp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solera National Bancorp	21.92%	N/A	N/A
First Financial Bancorp.	18.55%	10.32%	1.35%

Analyst Recommendations

This is a summary of recent ratings for Solera National Bancorp and First Financial Bancorp., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solera National Bancorp	0	0	0	0	0.00
First Financial Bancorp.	0	2	2	0	2.50

First Financial Bancorp. has a consensus target price of $28.67, suggesting a potential upside of 2.56%. Given First Financial Bancorp.’s stronger consensus rating and higher possible upside, analysts clearly believe First Financial Bancorp. is more favorable than Solera National Bancorp.

Risk & Volatility

Solera National Bancorp has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Solera National Bancorp and First Financial Bancorp.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solera National Bancorp	$65.19 million	0.63	$16.66 million	$3.78	2.51
First Financial Bancorp.	$1.12 billion	2.39	$255.86 million	$2.32	12.05

First Financial Bancorp. has higher revenue and earnings than Solera National Bancorp. Solera National Bancorp 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.

Summary

First Financial Bancorp. beats Solera National Bancorp on 11 of the 14 factors compared between the two stocks.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.

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.