First Niles Financial (OTCMKTS:FNFI) vs. First Capital (NASDAQ:FCAP) Critical Analysis

Posted by Defense World Staff on May 6th, 2023

First Capital (NASDAQ:FCAP – Get Rating) and First Niles Financial (OTCMKTS:FNFI – Get Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Risk & Volatility

First Capital has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, First Niles Financial has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Capital	29.51%	15.91%	1.14%
First Niles Financial	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Capital	0	0	0	0	N/A
First Niles Financial	0	0	0	0	N/A

Earnings & Valuation

This table compares First Capital and First Niles Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Capital	$41.87 million	1.86	$11.90 million	$3.93	5.89
First Niles Financial	N/A	N/A	N/A	N/A	N/A

First Capital has higher revenue and earnings than First Niles Financial.

Insider and Institutional Ownership

10.5% of First Capital shares are held by institutional investors. Comparatively, 0.3% of First Niles Financial shares are held by institutional investors. 4.2% of First Capital shares are held by insiders. Comparatively, 23.4% of First Niles Financial shares are held 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.

Dividends

First Capital pays an annual dividend of $1.08 per share and has a dividend yield of 4.7%. First Niles Financial pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. First Capital pays out 27.5% of its earnings in the form of a dividend. First Capital has increased its dividend for 1 consecutive years. First Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Capital beats First Niles Financial on 7 of the 10 factors compared between the two stocks.

About First Capital

(Get Rating)

First Capital, Inc. operates as a bank holding company, which engages in the provision of commercial and business banking services. Its loan portfolio includes residential real estate, land, construction, commercial real estate and business, home equity and second mortgage, and other consumer loans. The company was founded on September 11, 1998 and is headquartered in Corydon, IN.

About First Niles Financial

(Get Rating)

First Niles Financial, Inc. is a holding company, which engages in the provision of banking products and services. Its services include checking, savings, and loans. The company was founded in 1897 and is headquartered in Niles, OH.

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