WBS vs. FHN, CFR, ZION, PNFP, BOKF, SNV, ONB, FNB, UMBF, and FULT
Should you be buying Webster Financial stock or one of its competitors? The main competitors of Webster Financial include First Horizon (FHN), Cullen/Frost Bankers (CFR), Zions Bancorporation, National Association (ZION), Pinnacle Financial Partners (PNFP), BOK Financial (BOKF), Synovus Financial (SNV), Old National Bancorp (ONB), F.N.B. (FNB), UMB Financial (UMBF), and Fulton Financial (FULT). These companies are all part of the "regional banks" industry.
Webster Financial (NYSE:WBS) and First Horizon (NYSE:FHN) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, community ranking, media sentiment, analyst recommendations and dividends.
Webster Financial currently has a consensus target price of $56.23, suggesting a potential upside of 20.51%. First Horizon has a consensus target price of $16.15, suggesting a potential upside of 0.90%. Given Webster Financial's stronger consensus rating and higher possible upside, analysts plainly believe Webster Financial is more favorable than First Horizon.
First Horizon has higher revenue and earnings than Webster Financial. Webster Financial is trading at a lower price-to-earnings ratio than First Horizon, indicating that it is currently the more affordable of the two stocks.
Webster Financial received 37 more outperform votes than First Horizon when rated by MarketBeat users. Likewise, 58.92% of users gave Webster Financial an outperform vote while only 54.49% of users gave First Horizon an outperform vote.
85.6% of Webster Financial shares are held by institutional investors. Comparatively, 80.3% of First Horizon shares are held by institutional investors. 0.9% of Webster Financial shares are held by company insiders. Comparatively, 0.9% of First Horizon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Webster Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 3.7%. Webster Financial pays out 32.8% of its earnings in the form of a dividend. First Horizon pays out 42.0% 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.
Webster Financial has a net margin of 21.09% compared to First Horizon's net margin of 16.07%. Webster Financial's return on equity of 12.55% beat First Horizon's return on equity.
Webster Financial has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
In the previous week, First Horizon had 8 more articles in the media than Webster Financial. MarketBeat recorded 14 mentions for First Horizon and 6 mentions for Webster Financial. Webster Financial's average media sentiment score of 1.32 beat First Horizon's score of 0.96 indicating that Webster Financial is being referred to more favorably in the media.
Summary
Webster Financial beats First Horizon on 15 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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