Head-To-Head Analysis: Cullen/Frost Bankers (CFR) and The Competition

Cullen/Frost Bankers (NYSE: CFR) is one of 310 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Cullen/Frost Bankers to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Earnings & Valuation

This table compares Cullen/Frost Bankers and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cullen/Frost Bankers $1.14 billion $304.26 million 18.35
Cullen/Frost Bankers Competitors $5.49 billion $821.37 million 355.57

Cullen/Frost Bankers’ rivals have higher revenue and earnings than Cullen/Frost Bankers. Cullen/Frost Bankers is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Cullen/Frost Bankers pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. Cullen/Frost Bankers pays out 43.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.0% of their earnings in the form of a dividend. Cullen/Frost Bankers has raised its dividend for 24 consecutive years.

Profitability

This table compares Cullen/Frost Bankers and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 28.86% 11.64% 1.14%
Cullen/Frost Bankers Competitors 18.42% 8.46% 0.93%

Institutional & Insider Ownership

81.9% of Cullen/Frost Bankers shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Banks” companies are owned by institutional investors. 5.2% of Cullen/Frost Bankers shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Cullen/Frost Bankers has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers’ rivals have a beta of 0.81, indicating that their average share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cullen/Frost Bankers and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 0 12 2 0 2.14
Cullen/Frost Bankers Competitors 2127 8348 8354 329 2.36

Cullen/Frost Bankers currently has a consensus target price of $100.04, suggesting a potential upside of 4.42%. As a group, “Banks” companies have a potential downside of 2.70%. Given Cullen/Frost Bankers’ higher possible upside, equities analysts plainly believe Cullen/Frost Bankers is more favorable than its rivals.

Summary

Cullen/Frost Bankers rivals beat Cullen/Frost Bankers on 8 of the 15 factors compared.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc. is a financial holding company and a bank holding company. The Company, through its subsidiaries, provides a range of products and services throughout Texas markets. The Company’s segments include Banking, Frost Wealth Advisors and Non-Banks. The Banking segment includes both commercial and consumer banking services, and Frost Insurance Agency. The Frost Wealth Advisors segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. The Non-Banks segment includes the direct and indirect ownership of its banking and non-banking subsidiaries and the issuance of debt and equity. It offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.

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