Reviewing F.N.B. (FNB) & SunTrust Banks (STI)

SunTrust Banks (NYSE: FNB) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SunTrust Banks and F.N.B., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunTrust Banks 1 12 14 0 2.48
F.N.B. 0 3 4 0 2.57

SunTrust Banks presently has a consensus target price of $72.05, indicating a potential downside of 2.06%. F.N.B. has a consensus target price of $16.60, indicating a potential upside of 23.42%. Given F.N.B.’s stronger consensus rating and higher probable upside, analysts clearly believe F.N.B. is more favorable than SunTrust Banks.

Valuation & Earnings

This table compares SunTrust Banks and F.N.B.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunTrust Banks $9.74 billion 3.48 $2.27 billion $4.04 18.21
F.N.B. $1.23 billion 3.54 $199.20 million $0.93 14.46

SunTrust Banks has higher revenue and earnings than F.N.B.. F.N.B. is trading at a lower price-to-earnings ratio than SunTrust Banks, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.9% of SunTrust Banks shares are held by institutional investors. Comparatively, 81.4% of F.N.B. shares are held by institutional investors. 0.5% of SunTrust Banks shares are held by company insiders. Comparatively, 0.6% of F.N.B. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

SunTrust Banks pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. SunTrust Banks pays out 39.6% of its earnings in the form of a dividend. F.N.B. pays out 51.6% 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. SunTrust Banks has increased its dividend for 5 consecutive years.

Profitability

This table compares SunTrust Banks and F.N.B.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunTrust Banks 26.41% 10.94% 1.19%
F.N.B. 19.91% 7.70% 1.05%

Risk and Volatility

SunTrust Banks has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

SunTrust Banks beats F.N.B. on 12 of the 17 factors compared between the two stocks.

SunTrust Banks Company Profile

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services for consumers, businesses, corporations, and institutions in the United States. It operates through two segments, Consumer and Wholesale. The Consumer segment provides deposits and payments; home equity and personal credit lines; auto, student, and other lending products; credit cards; discount/online and full-service brokerage products; professional investment advisory products and services; and trust services, as well as family office solutions. This segment also offers residential mortgage products in the secondary market. The Wholesale segment provides capital markets solutions, including advisory, capital raising, and financial risk management, as well as lease financing solutions; cash management services and auto dealer financing solutions; and construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions. This segment also offers treasury and payment solutions, such as operating various electronic and paper payment types, which comprise card, wire transfer, automated clearing house, check, and cash; and provides services clients to manage their accounts online. The company offers its products and services through a network of traditional and in-store branches, automated teller machines, Internet, mobile, and telephone banking channels. As of December 31, 2017, it operated 1,268 full-service banking offices located in Florida, Georgia, Virginia, North Carolina, Tennessee, Maryland, South Carolina, and the District of Columbia. SunTrust Banks, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

F.N.B. Company Profile

F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising asset management, private banking, and insurance services. As of December 31, 2017, it operated 417 community banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, and South Carolina; and 77 consumer finance offices in Pennsylvania, Ohio, Tennessee, and Kentucky. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

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