Cullen/Frost Bankers (NYSE: CFR) is one of 327 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Cullen/Frost Bankers to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Volatility and Risk

Cullen/Frost Bankers has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers’ peers have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Cullen/Frost Bankers and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 3 11 2 0 1.94
Cullen/Frost Bankers Competitors 1967 7805 8040 304 2.37

Cullen/Frost Bankers currently has a consensus target price of $94.05, indicating a potential downside of 0.07%. As a group, “Banks” companies have a potential downside of 6.19%. Given Cullen/Frost Bankers’ higher probable upside, research analysts clearly believe Cullen/Frost Bankers is more favorable than its peers.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Cullen/Frost Bankers $1.13 billion N/A 18.49
Cullen/Frost Bankers Competitors N/A N/A 18.79

Cullen/Frost Bankers 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.

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 44.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.1% and pay out 37.1% of their earnings in the form of a dividend. Cullen/Frost Bankers has raised its dividend for 24 consecutive years.

Institutional and Insider Ownership

80.7% of Cullen/Frost Bankers shares are owned by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are owned by institutional investors. 5.2% of Cullen/Frost Bankers shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 28.49% 11.23% 1.11%
Cullen/Frost Bankers Competitors 18.90% 8.81% 0.93%

Summary

Cullen/Frost Bankers beats its peers on 8 of the 14 factors compared.

About Cullen/Frost Bankers

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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