Comparing First Horizon (NYSE:FHN) & Shore Bancshares (NASDAQ:SHBI)

First Horizon (NYSE:FHN) and Shore Bancshares (NASDAQ:SHBI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Dividends

First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. Shore Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.3%. First Horizon pays out 42.0% of its earnings in the form of a dividend. Shore Bancshares pays out 73.8% 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.

Profitability

This table compares First Horizon and Shore Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Horizon	16.07%	8.96%	0.92%
Shore Bancshares	5.82%	6.47%	0.59%

Insider & Institutional Ownership

80.3% of First Horizon shares are owned by institutional investors. Comparatively, 59.8% of Shore Bancshares shares are owned by institutional investors. 0.9% of First Horizon shares are owned by company insiders. Comparatively, 8.6% of Shore Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares First Horizon and Shore Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Horizon	$5.03 billion	1.74	$897.00 million	$1.43	11.05
Shore Bancshares	$159.65 million	2.33	$11.23 million	$0.65	17.25

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

Risk & Volatility

First Horizon has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for First Horizon and Shore Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Horizon	0	4	9	1	2.79
Shore Bancshares	0	1	1	0	2.50

First Horizon presently has a consensus price target of $16.15, suggesting a potential upside of 2.24%. Shore Bancshares has a consensus price target of $14.50, suggesting a potential upside of 29.35%. Given Shore Bancshares’ higher possible upside, analysts plainly believe Shore Bancshares is more favorable than First Horizon.

Summary

First Horizon beats Shore Bancshares on 11 of the 16 factors compared between the two stocks.

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.

About Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.