Reviewing BB&T Corporation (BBT) and Its Peers

BB&T Corporation (NYSE: BBT) is one of 341 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare BB&T Corporation to related businesses based on the strength of its institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares BB&T Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
BB&T Corporation $11.54 billion $2.43 billion 17.15
BB&T Corporation Competitors $6.26 billion $913.80 million 349.41

BB&T Corporation has higher revenue and earnings than its peers. BB&T Corporation 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.

Institutional and Insider Ownership

65.6% of BB&T Corporation shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 0.4% of BB&T Corporation shares are owned by insiders. Comparatively, 10.3% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

BB&T Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. BB&T Corporation pays out 49.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 34.6% of their earnings in the form of a dividend. BB&T Corporation has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for BB&T Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BB&T Corporation 1 12 5 0 2.22
BB&T Corporation Competitors 2257 9114 9201 377 2.37

BB&T Corporation currently has a consensus target price of $49.18, suggesting a potential upside of 6.60%. As a group, “Banks” companies have a potential downside of 2.84%. Given BB&T Corporation’s higher probable upside, analysts clearly believe BB&T Corporation is more favorable than its peers.

Risk & Volatility

BB&T Corporation has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, BB&T Corporation’s peers have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Profitability

This table compares BB&T Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BB&T Corporation 19.42% 9.64% 1.18%
BB&T Corporation Competitors 18.65% 8.64% 0.93%

Summary

BB&T Corporation beats its peers on 9 of the 15 factors compared.

BB&T Corporation Company Profile

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients. Its retail services include asset management, automobile lending, bankcard lending, consumer finance, home equity lending, home mortgage lending, insurance, investment brokerage services, payment solutions and sales finance, among others. Its commercial services include asset management, association services, capital market services, commercial deposit services, commercial finance, corporate banking, floor plan lending, insurance, merchant services, real estate lending and payment solutions, among others.

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