Wells Fargo & Co (NYSE:WFC) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Risk & Volatility
Wells Fargo & Co has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
This table compares Wells Fargo & Co and F.N.B.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wells Fargo & Co||23.17%||12.69%||1.20%|
This is a breakdown of current ratings and price targets for Wells Fargo & Co and F.N.B., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wells Fargo & Co||2||5||14||0||2.57|
Wells Fargo & Co currently has a consensus price target of $64.41, suggesting a potential upside of 20.15%. F.N.B. has a consensus price target of $16.60, suggesting a potential upside of 37.30%. Given F.N.B.’s stronger consensus rating and higher probable upside, analysts clearly believe F.N.B. is more favorable than Wells Fargo & Co.
Valuation & Earnings
This table compares Wells Fargo & Co and F.N.B.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wells Fargo & Co||$97.74 billion||2.68||$22.18 billion||$4.11||13.04|
|F.N.B.||$1.23 billion||3.18||$199.20 million||$0.93||13.00|
Wells Fargo & Co has higher revenue and earnings than F.N.B.. F.N.B. is trading at a lower price-to-earnings ratio than Wells Fargo & Co, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.6% of Wells Fargo & Co shares are held by institutional investors. Comparatively, 80.8% of F.N.B. shares are held by institutional investors. 0.1% of Wells Fargo & Co shares are held by insiders. Comparatively, 0.6% of F.N.B. shares are held 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.
Wells Fargo & Co pays an annual dividend of $1.72 per share and has a dividend yield of 3.2%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. Wells Fargo & Co pays out 41.8% of its earnings in the form of a dividend. F.N.B. pays out 51.6% 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. Wells Fargo & Co has increased its dividend for 6 consecutive years.
Wells Fargo & Co beats F.N.B. on 11 of the 17 factors compared between the two stocks.
Wells Fargo & Co Company Profile
Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The company's Community Banking segment offers checking and savings accounts; credit and debit cards; and automobile, student, mortgage, home equity, and small business loans. Its Wholesale Banking segment offers commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection, foreign exchange, treasury management, merchant payment processing, institutional fixed-income sales, commodity and equity risk management, corporate trust fiduciary and agency, and investment banking services, as well as online/electronic products. This segment also provides construction, and land acquisition and development loans; secured and unsecured lines of credit; interim financing arrangements; rehabilitation loans; affordable housing loans and letters of credit; loans for securitization; and real estate and mortgage brokerage services. The company's Wealth and Investment Management segment offers financial planning, private banking, credit, and investment management and fiduciary services, as well as retirement and trust services. As of September 4, 2018, it operated through 8,200 locations, 13,000 ATMs, and the Internet and mobile banking, as well as has offices in 42 countries and territories. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.
F.N.B. Company Profile
F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising asset management, private banking, and insurance services. As of December 31, 2017, it operated 417 community banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, and South Carolina; and 77 consumer finance offices in Pennsylvania, Ohio, Tennessee, and Kentucky. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.
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