F.N.B. (NYSE:FNB) & Banco Santander (NYSE:SAN) Financial Review

Banco Santander (NYSE:SAN) and F.N.B. (NYSE:FNB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Institutional and Insider Ownership

9.2% of Banco Santander shares are owned by institutional investors. Comparatively, 79.2% of F.N.B. shares are owned by institutional investors. 9.5% of Banco Santander shares are owned by insiders. Comparatively, 1.5% of F.N.B. 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.

Dividends

Banco Santander pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. F.N.B. pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. Banco Santander pays out 17.1% of its earnings in the form of a dividend. F.N.B. pays out 31.0% 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.

Profitability

This table compares Banco Santander and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Santander	26.94%	12.43%	0.75%
F.N.B.	22.29%	9.10%	1.22%

Valuation and Earnings

This table compares Banco Santander and F.N.B.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Santander	$66.36 billion	3.24	$15.95 billion	$1.23	11.89
F.N.B.	$2.69 billion	2.35	$565.00 million	$1.68	10.67

Banco Santander has higher revenue and earnings than F.N.B.. F.N.B. is trading at a lower price-to-earnings ratio than Banco Santander, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Banco Santander has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Banco Santander and F.N.B., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Santander	1	3	6	0	2.50
F.N.B.	0	2	4	1	2.86

F.N.B. has a consensus price target of $20.75, suggesting a potential upside of 15.79%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts clearly believe F.N.B. is more favorable than Banco Santander.

Summary

Banco Santander beats F.N.B. on 9 of the 17 factors compared between the two stocks.

About Banco Santander

Banco Santander, S.A. provides various financial services worldwide. The company operates through Retail Banking, Santander Corporate & Investment Banking, Wealth Management & Insurance, and PagoNxt segments. It offers demand and time deposits, mutual funds, and current and savings accounts; mortgages, consumer finance, loans, and various financing solutions; and project finance, debt capital markets, global transaction banking, and corporate finance services. The company also provides asset management and private banking services; and insurance products. In addition, it offers corporate and investment banking services; and digital payment solutions. Further, it offers online banking and financial services to retail, business, institutional, corporate, private banking and university customers and clients. The company was formerly known as Banco Santander Central Hispano SA and changed its name to Banco Santander, S.A. in February 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

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.