FCB Financial Holdings (NYSE: FCB) and WashingtonFirst Bankshares (NASDAQ:WFBI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
This is a breakdown of current ratings and price targets for FCB Financial Holdings and WashingtonFirst Bankshares, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FCB Financial Holdings||0||3||2||0||2.40|
FCB Financial Holdings currently has a consensus target price of $54.00, suggesting a potential upside of 10.54%. WashingtonFirst Bankshares has a consensus target price of $28.00, suggesting a potential downside of 23.39%. Given FCB Financial Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe FCB Financial Holdings is more favorable than WashingtonFirst Bankshares.
Institutional & Insider Ownership
94.0% of FCB Financial Holdings shares are owned by institutional investors. Comparatively, 54.5% of WashingtonFirst Bankshares shares are owned by institutional investors. 15.4% of FCB Financial Holdings shares are owned by company insiders. Comparatively, 20.7% of WashingtonFirst Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares FCB Financial Holdings and WashingtonFirst Bankshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FCB Financial Holdings||33.95%||11.11%||1.24%|
Volatility and Risk
FCB Financial Holdings has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, WashingtonFirst Bankshares has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
WashingtonFirst Bankshares pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. FCB Financial Holdings does not pay a dividend. WashingtonFirst Bankshares pays out 19.0% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares FCB Financial Holdings and WashingtonFirst Bankshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FCB Financial Holdings||$306.83 million||6.90||$123.94 million||$2.86||17.08|
|WashingtonFirst Bankshares||$87.25 million||5.48||$19.25 million||$1.47||24.84|
FCB Financial Holdings has higher revenue and earnings than WashingtonFirst Bankshares. FCB Financial Holdings is trading at a lower price-to-earnings ratio than WashingtonFirst Bankshares, indicating that it is currently the more affordable of the two stocks.
FCB Financial Holdings beats WashingtonFirst Bankshares on 12 of the 16 factors compared between the two stocks.
About FCB Financial Holdings
FCB Financial Holdings, Inc. is a bank holding company with a national bank subsidiary, Florida Community Bank, National Association (the Bank). The Company operates in the Community Banking segment. Through the Bank, the Company provides a range of retail and commercial banking services. As of December 31, 2016, the Company provided a range of financial products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities through 46 branches in south and central Florida. The Company targets retail customers and commercial customers engaged in various industries, including healthcare and professional services; retail and wholesale trade; tourism; agricultural services; manufacturing; distribution and distribution-related industries; technology; automotive; aviation; food products; building materials; residential housing, and commercial real estate. It also offers a suite of treasury management services.
About WashingtonFirst Bankshares
WashingtonFirst Bankshares, Inc. is a bank holding company. The Company, through its subsidiary, WashingtonFirst Bank (the Bank), operates banking offices throughout the Washington, D.C. metropolitan area. The Company’s segments include Commercial Bank, Mortgage Bank, Wealth Management and Other. In addition, the Company provides wealth management services through its subsidiary, 1st Portfolio, Inc. (Wealth Advisors), located in Fairfax, Virginia, and mortgage banking services through the Bank’s subsidiary, WashingtonFirst Mortgage Corporation, which operates in two locations: Fairfax, Virginia and Rockville, Maryland. The Company offers a range of commercial banking products and services to small-to-medium sized businesses, not-for-profit organizations, professional service firms and individuals in the greater Washington, D.C. metropolitan area.
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