First Foundation (NYSE:FFWM) versus First Horizon (NYSE:FHN) Financial Survey

First Foundation (NYSE:FFWM) and First Horizon (NYSE:FHN) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Foundation and First Horizon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Foundation	0	0	0	0	0.00
First Horizon	0	6	10	1	2.71

First Horizon has a consensus target price of $23.28, suggesting a potential upside of 2.04%. Given First Horizon’s stronger consensus rating and higher probable upside, analysts plainly believe First Horizon is more favorable than First Foundation.

Valuation and Earnings

This table compares First Foundation and First Horizon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Foundation	$545.12 million	0.75	-$92.41 million	($1.27)	-3.91
First Horizon	$5.03 billion	2.30	$775.00 million	$1.55	14.72

First Horizon has higher revenue and earnings than First Foundation. First Foundation is trading at a lower price-to-earnings ratio than First Horizon, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Foundation and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Foundation	-13.06%	-0.08%	-0.01%
First Horizon	17.10%	10.55%	1.13%

Volatility and Risk

First Foundation has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

73.1% of First Foundation shares are held by institutional investors. Comparatively, 80.3% of First Horizon shares are held by institutional investors. 9.5% of First Foundation shares are held by insiders. Comparatively, 1.0% of First Horizon 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.

Summary

First Horizon beats First Foundation on 13 of the 15 factors compared between the two stocks.

About First Foundation

First Foundation Inc., through its subsidiaries, provides personal banking, business banking, and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The company offers a range of bank deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, and commercial term loans and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. It also provides various specialized services comprising trust services, internet and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, the company offers investment management and financial planning services; treasury management services; advisory and coordination services in the areas of estate planning, retirement planning, and charitable and business ownership issues; and financial, investment, and economic advisory and related services. Further, it provides support services, including the processing and transmission of financial and economic data for charitable organizations. The company operates through a network of 28 branch offices and 3 loan production offices in California, Nevada, Texas, and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.