State Bank Financial (NASDAQ:STBZ) and Hancock (NASDAQ:HBHC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Insider and Institutional Ownership

78.6% of State Bank Financial shares are owned by institutional investors. Comparatively, 75.7% of Hancock shares are owned by institutional investors. 4.4% of State Bank Financial shares are owned by insiders. Comparatively, 1.0% of Hancock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares State Bank Financial and Hancock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Bank Financial 19.96% 11.91% 1.57%
Hancock N/A N/A N/A

Dividends

State Bank Financial pays an annual dividend of $0.80 per share. Hancock pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. State Bank Financial pays out 54.8% of its earnings in the form of a dividend. State Bank Financial has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for State Bank Financial and Hancock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Bank Financial 0 3 2 0 2.40
Hancock 0 1 1 0 2.50

State Bank Financial currently has a consensus target price of $37.00, indicating a potential upside of ∞. Hancock has a consensus target price of $57.00, indicating a potential upside of 10.36%. Given State Bank Financial’s higher probable upside, analysts plainly believe State Bank Financial is more favorable than Hancock.

Earnings & Valuation

This table compares State Bank Financial and Hancock’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
State Bank Financial $248.13 million 0.00 $46.57 million $1.46 N/A
Hancock N/A N/A N/A N/A N/A

State Bank Financial has higher revenue and earnings than Hancock.

Summary

State Bank Financial beats Hancock on 9 of the 12 factors compared between the two stocks.

State Bank Financial Company Profile

State Bank Financial Corporation operates as the bank holding company for State Bank and Trust Company that provides various community banking services to individuals and businesses. The company's deposit products and services include checking, commercial operating, savings and money market, and individual retirement accounts, as well as short- to longer-term certificates of deposit, commercial and consumer demand deposit, and savings and time deposit products. It also provides commercial and residential real estate mortgage, real estate construction, commercial and industrial, agriculture and consumer, real estate, real estate construction and development, commercial, financial, and agricultural loans, as well as loans to small and medium-sized businesses. In addition, the company offers correspondent banking products; payment solutions for funds collection and concentration services, such as ACH origination, electronic bill presentment and payment, remote deposit capture and cash deposit, retail and wholesale lockbox, and wire services. Further, it provides cash management accounts; disbursement services comprising online bill pay, person-to-person payments, and bank-to-bank transfers; fraud controls that include Positive Pay, ACH Decisioning, and IBM Security Trusteer Rapport malware protection; and online cash management systems. Additionally, the company offers payroll services, which comprise automated human resources information system, payroll, benefit, labor management, and insurance services; and online banking and bill payment, safe deposit box rental, debit card, and automated teller machine card services. As of December 31, 2017, it operated 32 full-service banking offices in Georgia, which comprises Bibb, Chatham, Clarke, Cobb, Columbia, Dooly, Fulton, Gwinnett, Hall, Houston, Jones, Liberty, McDuffie, Richmond, and Tattnall counties. The company was founded in 2005 and is headquartered in Atlanta, Georgia.

Hancock Company Profile

Hancock Holding Company operates as the bank holding company for Whitney Bank that provides a range of community banking services to commercial, small business, and retail customers. The company offers various deposit products, including noninterest-bearing demand deposits, interest-bearing transaction accounts, savings accounts, money market deposit accounts, and time deposit accounts. It also provides commercial and industrial; commercial real estate; construction and land development; and residential mortgages, including fixed and adjustable rate loans; and consumer loans comprising second lien mortgage home loans, home equity lines of credit, and nonresidential consumer purpose loans. In addition, the company offers treasury management services, investment brokerage services, letters of credit and financial guarantees, and revolving credit facilities. Further, it provides trust and investment management services to retirement plans, corporations, and individuals. Additionally, the company provides insurance agency services, discount investment brokerage services, life insurance, and consumer financing services, as well as operates and sells foreclosed assets. It operates approximately 237 full service banking and financial services offices and 277 automated teller machines in Gulf south corridor, south Mississippi; southern and central Alabama; southern Louisiana; the northern, central, and Panhandle regions of Florida; and Houston, Texas under the Hancock and Whitney Bank brand names, as well as operates a loan production office in Nashville, Tennessee. Hancock Holding Company was founded in 1883 and is headquartered in Gulfport, Mississippi.

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