Beacon Financial (BBT) vs. Its Peers Critical Contrast

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

Institutional and Insider 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 insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

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

Valuation and Earnings

This table compares Beacon Financial and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beacon Financial	$882.68 million	$90.27 million	21.37
Beacon Financial Competitors	$9.82 billion	$2.39 billion	22.01

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

Profitability

This table compares Beacon Financial and its competitors’ 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	14.94%	9.45%	0.92%

Analyst Recommendations

This is a summary of current ratings for Beacon Financial and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	4	3	0	2.43
Beacon Financial Competitors	7391	29791	27202	1371	2.34

Beacon Financial currently has a consensus target price of $32.50, indicating a potential upside of 15.20%. As a group, “Banks” companies have a potential upside of 12.44%. Given Beacon Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Beacon Financial is more favorable than its competitors.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.6%. 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 8.7% and pay out 29.0% of their earnings in the form of a dividend. Beacon Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Beacon Financial competitors 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.