Fifth Third Bancorp (FITB) & Its Competitors Critical Survey

Fifth Third Bancorp (NASDAQ:FITB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Fifth Third Bancorp to similar businesses based on the strength of its valuation, dividends, risk, profitability, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

83.8% of Fifth Third Bancorp shares are held by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are held by institutional investors. 0.5% of Fifth Third Bancorp shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Fifth Third Bancorp and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fifth Third Bancorp	$11.42 billion	$2.52 billion	18.57
Fifth Third Bancorp Competitors	$222.42 billion	$2.42 billion	21.19

Fifth Third Bancorp’s rivals have higher revenue, but lower earnings than Fifth Third Bancorp. Fifth Third Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Fifth Third Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth Third Bancorp	15.89%	12.39%	1.20%
Fifth Third Bancorp Competitors	15.65%	9.44%	0.93%

Dividends

Fifth Third Bancorp pays an annual dividend of $1.68 per share and has a dividend yield of 3.1%. Fifth Third Bancorp pays out 57.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.1% and pay out 28.9% of their earnings in the form of a dividend. Fifth Third Bancorp has increased its dividend for 14 consecutive years. Fifth Third Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Fifth Third Bancorp has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Fifth Third Bancorp’s rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Fifth Third Bancorp and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Third Bancorp	0	3	19	1	2.91
Fifth Third Bancorp Competitors	7484	30227	27809	1478	2.35

Fifth Third Bancorp presently has a consensus target price of $60.87, suggesting a potential upside of 12.28%. As a group, “Banks” companies have a potential upside of 15.14%. Given Fifth Third Bancorp’s rivals higher possible upside, analysts clearly believe Fifth Third Bancorp has less favorable growth aspects than its rivals.

Summary

Fifth Third Bancorp beats its rivals on 9 of the 15 factors compared.

Fifth Third Bancorp Company Profile

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.