BB&T Corporation (BBT) vs. Its Competitors Financial Review

BB&T Corporation (NYSE: BBT) is one of 316 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare BB&T Corporation to similar companies based on the strength of its earnings, risk, institutional ownership, analyst recommendations, valuation, dividends and profitability.

Volatility & Risk

BB&T Corporation has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, BB&T Corporation’s rivals have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Institutional and Insider Ownership

65.6% of BB&T Corporation shares are held by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are held by institutional investors. 0.4% of BB&T Corporation shares are held by insiders. Comparatively, 10.5% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for BB&T Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BB&T Corporation 1 12 5 0 2.22
BB&T Corporation Competitors 2121 8374 8431 329 2.36

BB&T Corporation presently has a consensus target price of $49.18, indicating a potential upside of 5.78%. As a group, “Banks” companies have a potential downside of 1.68%. Given BB&T Corporation’s higher possible upside, equities research analysts plainly believe BB&T Corporation is more favorable than its rivals.

Profitability

This table compares BB&T Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BB&T Corporation 19.42% 9.64% 1.18%
BB&T Corporation Competitors 18.75% 8.67% 0.94%

Dividends

BB&T Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. BB&T Corporation pays out 49.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.0% of their earnings in the form of a dividend. BB&T Corporation has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares BB&T Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
BB&T Corporation $11.54 billion $2.43 billion 17.28
BB&T Corporation Competitors $5.50 billion $822.45 million 361.42

BB&T Corporation has higher revenue and earnings than its rivals. BB&T Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

BB&T Corporation beats its rivals on 9 of the 15 factors compared.

BB&T Corporation Company Profile

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients. Its retail services include asset management, automobile lending, bankcard lending, consumer finance, home equity lending, home mortgage lending, insurance, investment brokerage services, payment solutions and sales finance, among others. Its commercial services include asset management, association services, capital market services, commercial deposit services, commercial finance, corporate banking, floor plan lending, insurance, merchant services, real estate lending and payment solutions, among others.

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