F.N.B. (NYSE:FNB – Get Free Report) and Park National (NYSE:PRK – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Institutional and Insider Ownership
79.3% of F.N.B. shares are owned by institutional investors. Comparatively, 62.7% of Park National shares are owned by institutional investors. 1.0% of F.N.B. shares are owned by insiders. Comparatively, 2.7% of Park National shares are owned by 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for F.N.B. and Park National, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| F.N.B. | 0 | 1 | 5 | 0 | 2.83 |
| Park National | 0 | 2 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares F.N.B. and Park National”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. | $1.60 billion | 3.27 | $465.33 million | $1.26 | 11.53 |
| Park National | $520.61 million | 5.06 | $151.42 million | $9.31 | 17.53 |
F.N.B. has higher revenue and earnings than Park National. F.N.B. is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.
Dividends
F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.3%. Park National pays an annual dividend of $4.28 per share and has a dividend yield of 2.6%. F.N.B. pays out 38.1% of its earnings in the form of a dividend. Park National pays out 46.0% 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. F.N.B. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
F.N.B. has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Park National has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Profitability
This table compares F.N.B. and Park National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| F.N.B. | 18.12% | 8.30% | 1.08% |
| Park National | 23.46% | 12.31% | 1.50% |
Summary
F.N.B. beats Park National on 9 of the 16 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 Park National
Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.
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