Simmons First National (NASDAQ: SFNC) and Susquehanna Bancshares (NASDAQ:SUSQ) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
14.2% of Simmons First National shares are held by institutional investors. 4.6% of Simmons First National shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Simmons First National and Susquehanna Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simmons First National||17.41%||8.28%||1.13%|
Simmons First National pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. Susquehanna Bancshares does not pay a dividend. Simmons First National pays out 43.8% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Simmons First National and Susquehanna Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Simmons First National||$533.77 million||5.23||$92.94 million||$1.37||22.12|
Simmons First National has higher revenue and earnings than Susquehanna Bancshares. Susquehanna Bancshares is trading at a lower price-to-earnings ratio than Simmons First National, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Simmons First National and Susquehanna Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simmons First National||0||3||2||0||2.40|
Simmons First National presently has a consensus price target of $31.63, indicating a potential upside of 4.37%.
Simmons First National beats Susquehanna Bancshares on 8 of the 10 factors compared between the two stocks.
About Simmons First National
Simmons First National Corporation is a financial holding company. The Company, through its subsidiary bank, Simmons Bank, provides financial services to individuals and businesses throughout the market areas they serve. As of December 31, 2016, Simmons Bank conducted banking operations through 150 financial centers located in communities throughout Arkansas, Kansas, Missouri, Tennessee, Colorado, Oklahoma and Texas. Simmons Bank offers consumer, real estate and commercial loans, checking and savings deposits. Simmons Bank and its subsidiaries have also developed products and services, which include credit cards, investments, agricultural finance lending, equipment lending, insurance and small business administration lending. The securities within the portfolio are classified as either held-to-maturity, available-for-sale or trading. The Company offers deposits, including non-interest bearing transaction accounts; interest bearing transaction accounts, and time deposits.
About Susquehanna Bancshares
Susquehanna Bancshares, Inc. is a financial holding company. The Company conducts its business operations primarily through its commercial bank subsidiary, Susquehanna Bank, and other subsidiaries in the mid-Atlantic region to provide a range of retail and commercial banking and financial products and services. It provides a range of retail banking services, including checking, savings and club accounts, check cards, debit cards, money market accounts, certificates of deposit, individual retirement accounts, home equity lines of credit, residential mortgage loans, home improvement loans, automobile loans, personal loans, and internet and mobile banking services. It also provides a range of commercial banking services, including business checking accounts, cash management services, money market accounts, land acquisition and development loans, commercial loans, floor plan, equipment and working capital lines of credit, small business loans and internet banking services.
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