Analyzing F.N.B. (NYSE:FNB) and Byline Bancorp (NYSE:BY)

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

Volatility and Risk

F.N.B. has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares F.N.B. and Byline Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$2.69 billion	2.33	$565.00 million	$1.70	10.52
Byline Bancorp	$633.15 million	2.72	$130.05 million	$3.43	11.12

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

Insider and Institutional Ownership

79.2% of F.N.B. shares are held by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are held by institutional investors. 1.5% of F.N.B. shares are held by insiders. Comparatively, 29.1% of Byline Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for F.N.B. and Byline Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	2	5	0	2.71
Byline Bancorp	0	3	3	1	2.71

F.N.B. currently has a consensus target price of $20.29, suggesting a potential upside of 13.47%. Byline Bancorp has a consensus target price of $43.50, suggesting a potential upside of 14.08%. Given Byline Bancorp’s higher possible upside, analysts plainly believe Byline Bancorp is more favorable than F.N.B..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
F.N.B.	22.46%	9.12%	1.22%
Byline Bancorp	24.06%	12.04%	1.57%

Dividends

F.N.B. pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. F.N.B. pays out 30.6% of its earnings in the form of a dividend. Byline Bancorp pays out 16.3% 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. Byline Bancorp has raised its dividend for 1 consecutive years.

Summary

Byline Bancorp beats F.N.B. on 11 of the 17 factors compared between the two stocks.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.