First Horizon National Corporation (NYSE: FHN) and Cape Bancorp (NASDAQ:CBNJ) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares First Horizon National Corporation and Cape Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Horizon National Corporation 19.36% 9.40% 0.86%
Cape Bancorp 13.12% 4.73% 0.50%

Dividends

First Horizon National Corporation pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Cape Bancorp does not pay a dividend. First Horizon National Corporation pays out 32.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for First Horizon National Corporation and Cape Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Horizon National Corporation 0 9 5 0 2.36
Cape Bancorp 0 0 0 0 N/A

First Horizon National Corporation presently has a consensus price target of $20.25, indicating a potential upside of 7.88%. Given First Horizon National Corporation’s higher possible upside, research analysts clearly believe First Horizon National Corporation is more favorable than Cape Bancorp.

Valuation & Earnings

This table compares First Horizon National Corporation and Cape Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Horizon National Corporation $1.29 billion 3.41 $262.34 million $1.12 16.76
Cape Bancorp N/A N/A N/A N/A N/A

First Horizon National Corporation has higher revenue and earnings than Cape Bancorp.

Institutional and Insider Ownership

85.0% of First Horizon National Corporation shares are held by institutional investors. 2.1% of First Horizon National Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

First Horizon National Corporation beats Cape Bancorp on 9 of the 10 factors compared between the two stocks.

First Horizon National Corporation Company Profile

First Horizon National Corporation (FHN) is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank). The Company has four segments: regional banking, fixed income, corporate and non-strategic. The Company’s regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and other selected markets. The regional banking segment provides investments and financial planning. The Company’s fixed income segment consists of fixed income securities sales, trading, and strategies for institutional clients in the United States and abroad. The Company’s corporate segment consists of funds management, tax credit investment activities and gains on the extinguishment of debt, among others. The non-strategic segment offers wind-down national consumer lending activities and mortgage banking elements.

Cape Bancorp Company Profile

Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.

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