Critical Analysis: Firstmerit Corp (FMER) and The Competition
Firstmerit Corp (NASDAQ: FMER) is one of 205 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its competitors? We will compare Firstmerit Corp to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.
Valuation and Earnings
This table compares Firstmerit Corp and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Firstmerit Corp Competitors||N/A||N/A||21.12|
Firstmerit Corp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Firstmerit Corp pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. Firstmerit Corp pays out 51.5% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 33.9% of their earnings in the form of a dividend.
This is a summary of current recommendations for Firstmerit Corp and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Firstmerit Corp Competitors||354||2830||2303||66||2.37|
As a group, “Commercial Banks” companies have a potential upside of 4.20%. Given Firstmerit Corp’s competitors higher possible upside, analysts clearly believe Firstmerit Corp has less favorable growth aspects than its competitors.
This table compares Firstmerit Corp and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Firstmerit Corp Competitors||20.64%||8.81%||0.93%|
Volatility and Risk
Firstmerit Corp has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Firstmerit Corp’s competitors have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.
Firstmerit Corp competitors beat Firstmerit Corp on 6 of the 9 factors compared.
Firstmerit Corp Company Profile
FirstMerit Corporation is a bank holding company. The Company’s business consists of owning and supervising its affiliates. It operates through FirstMerit Bank, N.A. and its other subsidiaries, providing a range of banking, fiduciary, financial, insurance and investment services to customers throughout Ohio, the Chicago, Illinois-metropolitan area, Michigan, Wisconsin and Western Pennsylvania. Its segments include Commercial, Retail, Wealth and Other. The Commercial segment provides various lending, depository and related financial services. The Retail segment includes consumer lending and deposit gathering, residential mortgage loan origination and servicing, and branch-based small business banking. The Wealth segment offers a range of asset management, private banking, financial planning, estate settlement and administration, credit and deposit products and services. The Other segment includes activities of the parent company, community development operations and the treasury group.
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