Professional (NASDAQ:PFHD) vs. First Merchants (NASDAQ:FRME) Financial Analysis

Professional (NASDAQ:PFHDget rating) and First Traders (NASDAQ:FRMEget rating) are both finance companies, but which is the better deal? We will compare the two companies based on earnings strength, institutional ownership, dividends, analyst recommendations, profitability, valuation, and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for professionals and early traders, as provided by MarketBeat.

sales ratings retention ratings Buy grades Strong purchase ratings Rating Score
Professional 0 one one 0 2.50
early merchants 0 0 3 0 3.00

Professional currently has a consensus price target of $23.00, suggesting 7.23% upside potential. First Merchants has a consensus price target of $47.33, suggesting 20.26% upside potential. Given First Merchants’ stronger consensus rating and potentially higher upside, analysts clearly believe First Merchants is more favorable than Professional.

Valuation and Earnings

This table compares top-tier revenue, earnings per share (EPS), and valuation for Professional and First Merchants.

Gross income Price/Sales Ratio Net income earnings per share Rate of earnings on price
Professional $85.81 million 3.39 $21.36 million $1.36 15.77
early merchants $555.96 million 3.81 $205.53 million $3.81 10.33

First Merchants has higher revenue and profit than Professional. First Merchants trades at a lower price-to-earnings ratio than Professional, indicating that it is currently the more affordable of the two stocks.

Institutional and internal property

59.8% of Professional shares are owned by institutional investors. Comparatively, 73.8% of First Merchants shares are owned by institutional investors. 8.6% of Professional shares are owned by insiders. Comparatively, 1.2% of First Merchants’ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Cost effectiveness

This table compares the net margins, return on equity, and return on assets of Professional and First Merchants.

net margins Return on equity Return on assets
Professional 21.78% 9.48% 0.82%
early merchants 36.71% 10.90% 1.33%


First Merchants outperforms Professional in 11 of 13 factors compared between the two stocks.

Company professional profile (get rating)

Professional Holding Corp. operates primarily through its subsidiary, Professional Bank, providing banking products and services to small and medium-sized businesses, other professionals and entrepreneurs. Its deposit products include checking, NOW, savings and money market accounts, as well as IRAs and certificates of deposit. The company’s loan products include business loans, residential mortgage loans, home equity lines of credit, installment loans and consumer lines of credit. It also offers online/digital and mobile banking services, as well as cash management and treasury management services. The company operates through a network of eleven locations in the regional areas of Miami, Broward and Palm Beach counties, and also has a digital innovation center located in Cleveland, Ohio and a loan production office in St. Pete. , Florida, Jacksonville, and Bedford, New Hampshire. Professional Holding Corp. was founded in 2008 and is headquartered in Coral Gables, Florida.

Company Profile First Merchants (get rating)

First Traders LogoFirst Merchants Corporation operates as the financial holding company for First Merchants Bank providing community banking services. Accepts term, savings and sight deposits; and provides consumer, commercial, agribusiness, and real estate mortgage loans, as well as public finance. The company also offers personal and corporate trust; brokerage and private wealth management; and letters of credit, repurchase agreements and other corporate services. It operates 109 bank branches in Indiana, Illinois, Ohio and Michigan counties. The company also offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

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