Financial Survey: Franklin Financial Network (FSB) vs. Its Rivals

Franklin Financial Network (NYSE: FSB) is one of 255 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Franklin Financial Network to similar businesses based on the strength of its risk, analyst recommendations, valuation, dividends, institutional ownership, earnings and profitability.

Profitability

This table compares Franklin Financial Network and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Financial Network 23.70% 11.48% 0.98%
Franklin Financial Network Competitors 18.32% 8.20% 0.93%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Franklin Financial Network and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Financial Network 0 4 1 0 2.20
Franklin Financial Network Competitors 2097 8167 8241 321 2.36

Franklin Financial Network currently has a consensus price target of $40.20, indicating a potential upside of 14.53%. As a group, “Banks” companies have a potential upside of 3.72%. Given Franklin Financial Network’s higher probable upside, equities research analysts plainly believe Franklin Financial Network is more favorable than its peers.

Volatility & Risk

Franklin Financial Network has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Franklin Financial Network’s peers have a beta of 0.86, meaning that their average stock price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Franklin Financial Network and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Franklin Financial Network $115.05 million $28.05 million 14.33
Franklin Financial Network Competitors $6.51 billion $982.87 million 79.58

Franklin Financial Network’s peers have higher revenue and earnings than Franklin Financial Network. Franklin Financial Network 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.

Institutional & Insider Ownership

54.9% of Franklin Financial Network shares are owned by institutional investors. Comparatively, 55.6% of shares of all “Banks” companies are owned by institutional investors. 10.6% of Franklin Financial Network shares are owned by company insiders. Comparatively, 9.5% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Franklin Financial Network peers beat Franklin Financial Network on 7 of the 13 factors compared.

About Franklin Financial Network

Franklin Financial Network, Inc. is a financial holding company. Through its bank subsidiary, Franklin Synergy Bank (the Bank), a commercial bank, the Company provides a range of banking and related financial services. The Company focuses on the provision of services to small businesses, corporate entities, local governments and individuals. As of December 31, 2016, the Company operated through 12 branches in Williamson and Rutherford counties and a loan production office within the Nashville metropolitan area. The Company’s loan portfolio consists of real estate loans, including construction and land development loans, commercial loans and residential loans; commercial and industrial, and consumer and other loans. The Company’s investment securities portfolio consists of both securities classified as available-for-sale and securities classified as held-to-maturity. The Company’s primary sources of funds include deposits.

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