WBS vs. CFR, FHN, PNFP, ZION, BOKF, SNV, FNB, ONB, UMBF, and BANF
Should you be buying Webster Financial stock or one of its competitors? The main competitors of Webster Financial include Cullen/Frost Bankers (CFR), First Horizon (FHN), Pinnacle Financial Partners (PNFP), Zions Bancorporation, National Association (ZION), BOK Financial (BOKF), Synovus Financial (SNV), F.N.B. (FNB), Old National Bancorp (ONB), UMB Financial (UMBF), and BancFirst (BANF). These companies are all part of the "regional banks" industry.
Cullen/Frost Bankers (NYSE:CFR) and Webster Financial (NYSE:WBS) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, community ranking, analyst recommendations, institutional ownership, media sentiment and dividends.
86.9% of Cullen/Frost Bankers shares are held by institutional investors. Comparatively, 85.6% of Webster Financial shares are held by institutional investors. 3.0% of Cullen/Frost Bankers shares are held by insiders. Comparatively, 0.7% of Webster Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Cullen/Frost Bankers has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
In the previous week, Webster Financial had 20 more articles in the media than Cullen/Frost Bankers. MarketBeat recorded 48 mentions for Webster Financial and 28 mentions for Cullen/Frost Bankers. Webster Financial's average media sentiment score of 0.42 beat Cullen/Frost Bankers' score of -0.17 indicating that Cullen/Frost Bankers is being referred to more favorably in the media.
Cullen/Frost Bankers pays an annual dividend of $3.68 per share and has a dividend yield of 3.4%. Webster Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.5%. Cullen/Frost Bankers pays out 43.5% of its earnings in the form of a dividend. Webster Financial pays out 32.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cullen/Frost Bankers has increased its dividend for 30 consecutive years. Webster Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cullen/Frost Bankers presently has a consensus target price of $117.46, suggesting a potential upside of 10.40%. Webster Financial has a consensus target price of $56.23, suggesting a potential upside of 24.46%. Given Cullen/Frost Bankers' stronger consensus rating and higher possible upside, analysts plainly believe Webster Financial is more favorable than Cullen/Frost Bankers.
Webster Financial has higher revenue and earnings than Cullen/Frost Bankers. Webster Financial is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.
Webster Financial has a net margin of 21.09% compared to Webster Financial's net margin of 20.57%. Webster Financial's return on equity of 18.31% beat Cullen/Frost Bankers' return on equity.
Webster Financial received 181 more outperform votes than Cullen/Frost Bankers when rated by MarketBeat users. Likewise, 58.92% of users gave Webster Financial an outperform vote while only 39.93% of users gave Cullen/Frost Bankers an outperform vote.
Summary
Webster Financial beats Cullen/Frost Bankers on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WBS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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