First Capital vs First Bank Which Is More Lucrative?

First Capital and First Bank are two prominent financial institutions with publicly traded stocks. First Capital is known for its focus on investment and wealth management services, while First Bank is a more traditional banking institution offering a variety of financial products and services. Both companies have seen fluctuations in their stock prices in recent years, with investors closely monitoring their performance and market trends. Understanding the differences between the two stocks can help investors make informed decisions about where to allocate their funds.

First Capital or First Bank?

When comparing First Capital and First Bank, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between First Capital and First Bank.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. First Capital has a dividend yield of 3.58%, while First Bank has a dividend yield of 1.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Capital reports a 5-year dividend growth of 3.26% year and a payout ratio of 31.38%. On the other hand, First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 14.99%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with First Capital P/E ratio at 8.72 and First Bank's P/E ratio at 9.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Capital P/B ratio is 0.88 while First Bank's P/B ratio is 0.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Capital has seen a 5-year revenue growth of 0.27%, while First Bank's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Capital's ROE at 10.83% and First Bank's ROE at 10.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $30.34 for First Capital and $14.79 for First Bank. Over the past year, First Capital's prices ranged from $24.40 to $38.00, with a yearly change of 55.74%. First Bank's prices fluctuated between $11.20 and $15.87, with a yearly change of 41.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.