Contrasting Beacon Financial (BBT) & Its Peers

Beacon Financial (NYSE:BBT) is one of 926 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Beacon Financial to related businesses based on the strength of its dividends, profitability, earnings, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

83.1% of Beacon Financial shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Banks” companies are owned by institutional investors. 1.1% of Beacon Financial shares are owned by company insiders. Comparatively, 9.9% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Beacon Financial and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beacon Financial	$882.68 million	$90.27 million	23.83
Beacon Financial Competitors	$9.83 billion	$2.39 billion	22.61

Beacon Financial’s peers have higher revenue and earnings than Beacon Financial. Beacon Financial is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Beacon Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beacon Financial	8.96%	9.15%	1.01%
Beacon Financial Competitors	14.93%	9.46%	0.92%

Risk and Volatility

Beacon Financial has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Beacon Financial’s peers have a beta of 0.59, suggesting that their average stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Beacon Financial and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	4	3	0	2.43
Beacon Financial Competitors	7346	29640	27025	1351	2.34

Beacon Financial currently has a consensus target price of $32.50, indicating a potential upside of 3.34%. As a group, “Banks” companies have a potential upside of 9.45%. Given Beacon Financial’s peers higher possible upside, analysts plainly believe Beacon Financial has less favorable growth aspects than its peers.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.1%. Beacon Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.6% and pay out 32.4% of their earnings in the form of a dividend. Beacon Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Beacon Financial peers beat Beacon Financial on 10 of the 15 factors compared.

About Beacon Financial

Truist Financial Corp. operates as a financial holding company, which engages in the provision of banking services to individuals, businesses and municipalities. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health Truist Financial Corp. operates as a financial holding company. It engages in the provision of banking services to individuals, businesses and municipalities. The company operates through the following segments: Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC. insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC.