WashingtonFirst Bankshares (NASDAQ: WFBI) and FCB Financial Holdings (NYSE:FCB) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Insider and Institutional Ownership

54.5% of WashingtonFirst Bankshares shares are owned by institutional investors. Comparatively, 94.0% of FCB Financial Holdings shares are owned by institutional investors. 20.7% of WashingtonFirst Bankshares shares are owned by company insiders. Comparatively, 15.4% of FCB Financial Holdings shares are owned by company 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.

Profitability

This table compares WashingtonFirst Bankshares and FCB Financial Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WashingtonFirst Bankshares 18.42% 29.77% 0.98%
FCB Financial Holdings 33.95% 11.11% 1.24%

Earnings and Valuation

This table compares WashingtonFirst Bankshares and FCB Financial Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WashingtonFirst Bankshares $87.25 million 5.37 $19.25 million $1.47 24.33
FCB Financial Holdings $306.83 million 6.81 $123.94 million $2.86 16.87

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.

Dividends

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.

Risk & Volatility

WashingtonFirst Bankshares has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, FCB Financial Holdings has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for WashingtonFirst Bankshares and FCB Financial Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WashingtonFirst Bankshares 0 3 0 0 2.00
FCB Financial Holdings 0 3 2 0 2.40

WashingtonFirst Bankshares currently has a consensus target price of $28.00, suggesting a potential downside of 21.79%. FCB Financial Holdings has a consensus target price of $54.00, suggesting a potential upside of 11.92%. Given FCB Financial Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe FCB Financial Holdings is more favorable than WashingtonFirst Bankshares.

Summary

FCB Financial Holdings beats WashingtonFirst Bankshares on 12 of the 16 factors compared between the two stocks.

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.

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.

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