Contrasting FB Financial (FBK) & The Competition

FB Financial (NYSE:FBK) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare FB Financial to similar companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

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	15.66%	9.44%	0.93%

Analyst Ratings

This is a summary of recent recommendations for FB Financial and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Financial	0	0	6	1	3.14
FB Financial Competitors	7464	30192	27759	1465	2.35

FB Financial currently has a consensus price target of $64.43, indicating a potential upside of 17.43%. As a group, “Banks” companies have a potential upside of 15.53%. Given FB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe FB Financial is more favorable than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
FB Financial	$877.84 million	$122.62 million	12.19
FB Financial Competitors	$9.95 billion	$2.42 billion	17.38

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.

Insider and Institutional Ownership

65.4% of FB Financial shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 2.0% of FB Financial shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. 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 9.2% and pay out 28.9% of their earnings in the form of a dividend. FB Financial has raised its dividend for 8 consecutive years.

Volatility and Risk

FB Financial has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, FB Financial’s peers have a beta of 0.52, meaning that their average share price is 48% less volatile than the S&P 500.

Summary

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

About FB Financial

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.