Comparing F.N.B. (NYSE:FNB) & Simmons First National (NASDAQ:SFNC)

F.N.B. (NYSE:FNB) and Simmons First National (NASDAQ:SFNC) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings for F.N.B. and Simmons First National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	0	6	0	3.00
Simmons First National	0	2	1	0	2.33

F.N.B. presently has a consensus price target of $17.75, suggesting a potential upside of 32.76%. Simmons First National has a consensus price target of $22.33, suggesting a potential upside of 20.40%. Given F.N.B.’s stronger consensus rating and higher possible upside, equities analysts plainly believe F.N.B. is more favorable than Simmons First National.

Profitability

This table compares F.N.B. and Simmons First 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%
Simmons First National	10.46%	5.10%	0.65%

Valuation and Earnings

This table compares F.N.B. and Simmons First National”s top-line 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	3.00	$465.33 million	$1.26	10.61
Simmons First National	$780.57 million	2.99	$152.69 million	$1.16	15.99

F.N.B. has higher revenue and earnings than Simmons First National. F.N.B. is trading at a lower price-to-earnings ratio than Simmons First 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 3.6%. Simmons First National pays an annual dividend of $0.85 per share and has a dividend yield of 4.6%. F.N.B. pays out 38.1% of its earnings in the form of a dividend. Simmons First National pays out 73.3% 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. Simmons First National has increased its dividend for 14 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

F.N.B. has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Simmons First National has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

79.3% of F.N.B. shares are owned by institutional investors. Comparatively, 27.6% of Simmons First National shares are owned by institutional investors. 1.4% of F.N.B. shares are owned by company insiders. Comparatively, 1.9% of Simmons First National shares are owned 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.

Summary

F.N.B. beats Simmons First National on 13 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 Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.