FCB Financial (NYSE:FCB) and Wells Fargo & Co (NYSE:WFC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider & Institutional Ownership

89.1% of FCB Financial shares are owned by institutional investors. Comparatively, 73.3% of Wells Fargo & Co shares are owned by institutional investors. 9.6% of FCB Financial shares are owned by insiders. Comparatively, 0.1% of Wells Fargo & Co shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Wells Fargo & Co pays an annual dividend of $1.80 per share and has a dividend yield of 3.7%. FCB Financial does not pay a dividend. Wells Fargo & Co pays out 41.1% of its earnings in the form of a dividend. Wells Fargo & Co has raised its dividend for 7 consecutive years.

Risk and Volatility

FCB Financial has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Wells Fargo & Co has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares FCB Financial and Wells Fargo & Co’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FCB Financial $409.12 million 3.84 $125.19 million $3.28 10.24
Wells Fargo & Co $101.06 billion 2.38 $22.39 billion $4.38 11.24

Wells Fargo & Co has higher revenue and earnings than FCB Financial. FCB Financial is trading at a lower price-to-earnings ratio than Wells Fargo & Co, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FCB Financial and Wells Fargo & Co’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FCB Financial 29.45% 13.02% 1.44%
Wells Fargo & Co 22.95% 13.34% 1.25%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for FCB Financial and Wells Fargo & Co, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FCB Financial 0 3 2 0 2.40
Wells Fargo & Co 0 7 11 0 2.61

FCB Financial currently has a consensus target price of $53.25, indicating a potential upside of 58.58%. Wells Fargo & Co has a consensus target price of $61.70, indicating a potential upside of 25.36%. Given FCB Financial’s higher probable upside, equities research analysts plainly believe FCB Financial is more favorable than Wells Fargo & Co.

Summary

Wells Fargo & Co beats FCB Financial on 9 of the 17 factors compared between the two stocks.

FCB Financial Company Profile

FCB Financial Holdings, Inc. operates as the bank holding company for Florida Community Bank, N.A. that provides various financial products and services to individuals, small and medium-sized businesses, large businesses, and other local organizations and entities in south and central Florida. The company offers various deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit; checking products; and money market accounts and IRAs. It also offers consumer loans, such as personal and auto loans, recreational loans, and home improvement/second mortgage loans. In addition, the company provides commercial credit products, such as lines of credit to finance working capital and trade activities; loans for owner occupied real estate financing; equipment financing; acquisition financing; construction financing, mini-permanent and permanent financing, acquisition and development lending, land financing, and bridge lending services to commercial real estate clients; and specialty financing services to owners and operators in the areas of aviation and marine lending, as well as participates in club lending structures. Further, it offers syndicated loans; credit cards and purchasing cards; and derivative products, such as interest rate swaps; treasury products; securities brokerage services, investment advice, and investment recommendations; and online and mobile banking, safe deposit boxes, and payment services. As of December 31, 2017, FCB Financial Holdings, Inc. operated through a network of 46 banking centers in Florida. The company was formerly known as Bond Street Holdings, Inc. and changed its name to FCB Financial Holdings, Inc. in June 2014. FCB Financial Holdings, Inc. was founded in 1923 and is headquartered in Weston, Florida.

Wells Fargo & Co Company Profile

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The company's Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business loans. Its Wholesale Banking segment offers commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection, foreign exchange, treasury management, merchant payment processing, institutional fixed-income sales, commodity and equity risk management, corporate trust fiduciary and agency, and investment banking services, as well as online/electronic products. This segment also provides construction, and land acquisition and development loans; secured and unsecured lines of credit; interim financing arrangements; rehabilitation loans; affordable housing loans and letters of credit; loans for securitization; and real estate and mortgage brokerage services. The company's Wealth and Investment Management segment offers financial planning, private banking, credit, and investment management and fiduciary services, as well as retirement and trust services. As of September 4, 2018, it operated through 8,200 locations, 13,000 ATMs, and the Internet and mobile banking, as well as has offices in 42 countries and territories. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.

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