Analyzing First Horizon (NYSE:FHN) & California Business Bank (OTCMKTS:CABB)

California Business Bank (OTCMKTS:CABB) and First Horizon (NYSE:FHN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current recommendations for California Business Bank and First Horizon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Business Bank	0	0	0	0	0.00
First Horizon	0	10	8	1	2.53

First Horizon has a consensus target price of $25.41, suggesting a potential upside of 5.38%. Given First Horizon’s stronger consensus rating and higher probable upside, analysts clearly believe First Horizon is more favorable than California Business Bank.

Insider & Institutional Ownership

80.3% of First Horizon shares are held by institutional investors. 0.9% of First Horizon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

California Business Bank has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares California Business Bank and First Horizon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Business Bank	N/A	N/A	N/A	N/A	N/A
First Horizon	$5.03 billion	2.36	$775.00 million	$1.65	14.62

First Horizon has higher revenue and earnings than California Business Bank.

Profitability

This table compares California Business Bank and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Business Bank	N/A	N/A	N/A
First Horizon	18.08%	10.93%	1.16%

Summary

First Horizon beats California Business Bank on 11 of the 11 factors compared between the two stocks.

About California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.