FB Financial (NYSE:FBK – Get Free Report) and National Bank (NYSE:NBHC – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Risk and Volatility
FB Financial has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, National Bank has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Dividends
FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. National Bank pays an annual dividend of $1.28 per share and has a dividend yield of 3.4%. FB Financial pays out 18.7% of its earnings in the form of a dividend. National Bank pays out 53.8% 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. FB Financial has increased its dividend for 8 consecutive years and National Bank has increased its dividend for 10 consecutive years. National Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for FB Financial and National Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FB Financial | 0 | 0 | 6 | 1 | 3.14 |
| National Bank | 0 | 3 | 2 | 0 | 2.40 |
FB Financial currently has a consensus target price of $64.43, indicating a potential upside of 21.64%. National Bank has a consensus target price of $44.67, indicating a potential upside of 19.34%. Given FB Financial’s stronger consensus rating and higher possible upside, research analysts clearly believe FB Financial is more favorable than National Bank.
Institutional and Insider Ownership
65.4% of FB Financial shares are owned by institutional investors. Comparatively, 92.7% of National Bank shares are owned by institutional investors. 2.0% of FB Financial shares are owned by company insiders. Comparatively, 6.8% of National Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares FB Financial and National Bank’s 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% |
| National Bank | 15.11% | 8.35% | 1.13% |
Earnings & Valuation
This table compares FB Financial and National Bank”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FB Financial | $877.84 million | 3.02 | $122.62 million | $4.50 | 11.77 |
| National Bank | $587.34 million | 2.84 | $109.57 million | $2.38 | 15.73 |
FB Financial has higher revenue and earnings than National Bank. FB Financial is trading at a lower price-to-earnings ratio than National Bank, indicating that it is currently the more affordable of the two stocks.
Summary
FB Financial beats National Bank on 13 of the 18 factors compared between the two stocks.
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.
About National Bank
National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.
Receive News & Ratings for FB Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FB Financial and related companies with MarketBeat.com's FREE daily email newsletter.
