Head-To-Head Review: Associated Banc-Corp (ASB) & F.N.B. Corporation (FNB)
Associated Banc-Corp (NYSE: ASB) and F.N.B. Corporation (NYSE:FNB) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
This table compares Associated Banc-Corp and F.N.B. Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Associated Banc-Corp and F.N.B. Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Associated Banc-Corp presently has a consensus target price of $25.00, indicating a potential upside of 17.65%. F.N.B. Corporation has a consensus target price of $17.72, indicating a potential upside of 46.22%. Given F.N.B. Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe F.N.B. Corporation is more favorable than Associated Banc-Corp.
Risk and Volatility
Associated Banc-Corp has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, F.N.B. Corporation has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Institutional & Insider Ownership
77.5% of Associated Banc-Corp shares are owned by institutional investors. Comparatively, 76.4% of F.N.B. Corporation shares are owned by institutional investors. 1.8% of Associated Banc-Corp shares are owned by insiders. Comparatively, 1.2% of F.N.B. Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Associated Banc-Corp and F.N.B. Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Associated Banc-Corp||$1.02 billion||3.16||$210.79 million||$1.39||15.29|
|F.N.B. Corporation||$878.51 million||4.43||$250.58 million||$0.78||15.54|
F.N.B. Corporation has higher revenue, but lower earnings than Associated Banc-Corp. Associated Banc-Corp is trading at a lower price-to-earnings ratio than F.N.B. Corporation, indicating that it is currently the more affordable of the two stocks.
Associated Banc-Corp pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. F.N.B. Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. Associated Banc-Corp pays out 34.5% of its earnings in the form of a dividend. F.N.B. Corporation pays out 61.5% 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.
F.N.B. Corporation beats Associated Banc-Corp on 9 of the 17 factors compared between the two stocks.
Associated Banc-Corp Company Profile
Associated Banc-Corp is a bank holding company. The Company, through its banking subsidiary Associated Bank, National Association (the Bank) and various nonbanking subsidiaries, provides a range of banking and non-banking products and services to individuals. The Company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business, and Risk Management and Shared Services. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are shared functions.
F.N.B. Corporation Company Profile
F.N.B. Corporation is a financial holding company. The Company operates through four segments: Community Banking, Wealth Management, Insurance and Consumer Finance. Its Community Banking segment consists of First National Bank of Pennsylvania (FNBPA), which offers services, including commercial and individual demand, savings and time deposit accounts and commercial, mortgage and individual installment loans. It operates its Community Banking business through a network of over 290 branches in Pennsylvania, Ohio, Maryland and West Virginia. Its Wealth Management segment delivers wealth management services to individuals, corporations and retirement funds, as well as existing customers of Community Banking. The Company’s Insurance segment operates principally through First National Insurance Agency, LLC (FNIA), which is a subsidiary of the Corporation. Its Consumer Finance segment operates through its subsidiary, Regency Finance Company. It also operates other non-banking subsidiaries.
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