First Interstate BancSystem (NASDAQ:FIBK) vs. Equitable Financial (OTCMKTS:EQFN) Head to Head Review

First Interstate BancSystem (NASDAQ:FIBK) and Equitable Financial (OTCMKTS:EQFN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. Comparatively, 7.2% of Equitable Financial shares are held by institutional investors. 8.2% of First Interstate BancSystem shares are held by insiders. Comparatively, 11.3% of Equitable 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.

Valuation & Earnings

This table compares First Interstate BancSystem and Equitable Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$1.05 billion	3.19	$302.10 million	$3.07	11.25
Equitable Financial	$33.95 million	1.21	$3.44 million	$1.34	12.45

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

Profitability

This table compares First Interstate BancSystem and Equitable Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	22.64%	9.13%	1.16%
Equitable Financial	9.70%	6.57%	0.64%

Analyst Ratings

This is a summary of current recommendations and price targets for First Interstate BancSystem and Equitable Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	2	3	3	0	2.13
Equitable Financial	0	0	0	0	0.00

First Interstate BancSystem currently has a consensus target price of $37.33, indicating a potential upside of 8.07%. Given First Interstate BancSystem’s stronger consensus rating and higher possible upside, analysts clearly believe First Interstate BancSystem is more favorable than Equitable Financial.

Volatility & Risk

First Interstate BancSystem has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Equitable Financial has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Summary

First Interstate BancSystem beats Equitable Financial on 12 of the 14 factors compared between the two stocks.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.