FB Financial (FBK) versus Its Competitors Financial Review

FB Financial (NYSE:FBK) is one of 920 publicly-traded companies in the “Banks” industry, but how does it contrast to its peers? We will compare FB Financial to similar businesses based on the strength of its dividends, earnings, valuation, profitability, analyst recommendations, risk and institutional ownership.

Volatility and Risk

FB Financial has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, FB Financial’s peers have a beta of 0.51, suggesting that their average stock price is 49% less volatile than the S&P 500.

Earnings & Valuation

This table compares FB Financial and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FB Financial	$877.84 million	$122.62 million	11.77
FB Financial Competitors	$251.01 billion	$2.41 billion	19.13

FB Financial’s peers have higher revenue and earnings than FB Financial. FB Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

65.4% of FB Financial shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 2.0% of FB Financial shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares FB Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FB Financial	22.62%	12.32%	1.44%
FB Financial Competitors	15.24%	9.38%	0.92%

Dividends

FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. FB Financial pays out 18.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 29.0% of their earnings in the form of a dividend. FB Financial has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for FB Financial and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Financial	0	0	6	1	3.14
FB Financial Competitors	7448	30107	27656	1443	2.35

FB Financial presently has a consensus target price of $64.43, indicating a potential upside of 21.64%. As a group, “Banks” companies have a potential upside of 15.78%. Given FB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe FB Financial is more favorable than its peers.

Summary

FB Financial beats its peers on 10 of the 15 factors compared.

FB Financial Company Profile

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.