Reviewing First Republic Bank (FRCB) and Its Peers

First Republic Bank (OTCMKTS:FRCB – Get Rating) is one of 70 public companies in the “Commercial banks, not elsewhere classified” industry, but how does it contrast to its peers? We will compare First Republic Bank to related companies based on the strength of its risk, analyst recommendations, earnings, profitability, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

95.2% of First Republic Bank shares are held by institutional investors. Comparatively, 26.0% of shares of all “Commercial banks, not elsewhere classified” companies are held by institutional investors. 0.7% of First Republic Bank shares are held by company insiders. Comparatively, 6.8% of shares of all “Commercial banks, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

First Republic Bank pays an annual dividend of 1.08 per share and has a dividend yield of 351.2%. First Republic Bank pays out 14.4% of its earnings in the form of a dividend. As a group, “Commercial banks, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 17.0% of their earnings in the form of a dividend. First Republic Bank is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for First Republic Bank and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	N/A
First Republic Bank Competitors	629	2237	2268	60	2.34

As a group, “Commercial banks, not elsewhere classified” companies have a potential upside of 85.02%. Given First Republic Bank’s peers higher probable upside, analysts plainly believe First Republic Bank has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares First Republic Bank and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Republic Bank	$6.75 billion	$1.67 billion	0.04
First Republic Bank Competitors	$105.28 billion	$3.07 billion	9.07

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

Profitability

This table compares First Republic Bank and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Republic Bank	20.45%	11.26%	0.72%
First Republic Bank Competitors	18.91%	11.95%	0.97%

Volatility and Risk

First Republic Bank has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, First Republic Bank’s peers have a beta of 0.94, meaning that their average share price is 6% less volatile than the S&P 500.

Summary

First Republic Bank peers beat First Republic Bank on 7 of the 12 factors compared.

About First Republic Bank

(Get Rating)

First Republic offers banking for individuals and businesses, wealth management and more with a focus on tailored service and solutions. First Republic was founded in San Francisco in 1985 by James H. Herbert II with a single office and a small but dedicated staff. Years later, First Republic is one of the country’s largest banks, serving clients at more than 80 Preferred Banking Offices across the United States and through online banking services. First Republic prides itself on its convenient online presence, strong heritage and sustainable, client-centric approach that has provided consistent growth. First Republic Bank offers a full range of personal and business banking services including lending, deposit, foreign exchange and more, while First Republic Private Wealth Management provides trust, brokerage and wealth advisory services. Across all of its offerings, First Republic is committed to serving its stakeholders and clients with exceptional, personalized service, putting clients first in all that it does. Banking products and services are offered by First Republic Bank, Member FDIC and Equal Housing Lender. Investment Advisory services are provided by First Republic