Head-To-Head Survey: Citizens Financial Group (NYSE:CFG) vs. FB Financial (NYSE:FBK)

Citizens Financial Group (NYSE:CFGGet Rating) and FB Financial (NYSE:FBKGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Citizens Financial Group and FB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens Financial Group 1 4 9 0 2.57
FB Financial 1 0 3 0 2.50

Citizens Financial Group presently has a consensus target price of $48.44, suggesting a potential upside of 37.80%. FB Financial has a consensus target price of $46.00, suggesting a potential upside of 15.20%. Given Citizens Financial Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Citizens Financial Group is more favorable than FB Financial.

Profitability

This table compares Citizens Financial Group and FB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens Financial Group 25.04% 10.26% 1.10%
FB Financial 25.37% 10.88% 1.22%

Volatility and Risk

Citizens Financial Group has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, FB Financial has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

88.1% of Citizens Financial Group shares are held by institutional investors. Comparatively, 65.1% of FB Financial shares are held by institutional investors. 0.5% of Citizens Financial Group shares are held by company insiders. Comparatively, 1.9% of FB Financial shares are held 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 Citizens Financial Group and FB Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial Group $6.99 billion 2.49 $2.32 billion $3.95 8.90
FB Financial $613.25 million 3.05 $190.29 million $3.11 12.84

Citizens Financial Group has higher revenue and earnings than FB Financial. Citizens Financial Group is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Citizens Financial Group pays an annual dividend of $1.68 per share and has a dividend yield of 4.8%. FB Financial pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Citizens Financial Group pays out 42.5% of its earnings in the form of a dividend. FB Financial pays out 16.7% 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. Citizens Financial Group has raised its dividend for 1 consecutive years and FB Financial has raised its dividend for 3 consecutive years.

Summary

Citizens Financial Group beats FB Financial on 9 of the 17 factors compared between the two stocks.

About Citizens Financial Group

(Get Rating)

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and commercial non-branch offices in national markets; and approximately 3,300 automated teller machines. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

About FB Financial

(Get Rating)

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in two segments, Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as engages in the mortgage origination business. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch networks in the southeastern United States; an internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. As of December 31, 2021, it operated 82 full-service bank branches and 9 limited-service branches locations throughout Tennessee, North Alabama, Southern Kentucky, and North Georgia; and 23 mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

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