F.N.B. (NYSE:FNB – Get Free Report) and Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Dividends
F.N.B. pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Texas Capital Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. F.N.B. pays out 31.0% of its earnings in the form of a dividend. Texas Capital Bancshares pays out 10.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares F.N.B. and Texas Capital Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| F.N.B. | 22.29% | 9.10% | 1.22% |
| Texas Capital Bancshares | 17.90% | 10.86% | 1.10% |
Institutional and Insider Ownership
Analyst Recommendations
This is a breakdown of current ratings and price targets for F.N.B. and Texas Capital Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| F.N.B. | 0 | 1 | 4 | 1 | 3.00 |
| Texas Capital Bancshares | 1 | 8 | 4 | 0 | 2.23 |
F.N.B. presently has a consensus price target of $20.90, suggesting a potential upside of 13.92%. Texas Capital Bancshares has a consensus price target of $105.83, suggesting a potential upside of 8.34%. Given F.N.B.’s stronger consensus rating and higher probable upside, analysts plainly believe F.N.B. is more favorable than Texas Capital Bancshares.
Risk & Volatility
F.N.B. has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Earnings & Valuation
This table compares F.N.B. and Texas Capital Bancshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| F.N.B. | $2.69 billion | 2.40 | $565.00 million | $1.68 | 10.92 |
| Texas Capital Bancshares | $1.33 billion | 3.20 | $330.24 million | $7.69 | 12.70 |
F.N.B. has higher revenue and earnings than Texas Capital Bancshares. F.N.B. is trading at a lower price-to-earnings ratio than Texas Capital Bancshares, indicating that it is currently the more affordable of the two stocks.
Summary
F.N.B. beats Texas Capital Bancshares on 9 of the 16 factors compared between the two stocks.
About F.N.B.
F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.
About Texas Capital Bancshares
Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.
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