First Financial Bankshares (NASDAQ: FFIN) is one of 206 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare First Financial Bankshares to related companies based on the strength of its profitability, analyst recommendations, dividends, earnings, valuation, institutional ownership and risk.
Institutional & Insider Ownership
50.1% of First Financial Bankshares shares are held by institutional investors. Comparatively, 47.4% of shares of all “Commercial Banks” companies are held by institutional investors. 5.4% of First Financial Bankshares shares are held by insiders. Comparatively, 11.9% of shares of all “Commercial Banks” companies 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.
Risk & Volatility
First Financial Bankshares has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, First Financial Bankshares’ competitors have a beta of 0.73, suggesting that their average stock price is 27% less volatile than the S&P 500.
This is a summary of recent ratings for First Financial Bankshares and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Bankshares||0||4||0||0||2.00|
|First Financial Bankshares Competitors||838||3905||2829||114||2.29|
First Financial Bankshares currently has a consensus target price of $40.25, indicating a potential upside of 0.37%. As a group, “Commercial Banks” companies have a potential upside of 5.08%. Given First Financial Bankshares’ competitors stronger consensus rating and higher possible upside, analysts plainly believe First Financial Bankshares has less favorable growth aspects than its competitors.
This table compares First Financial Bankshares and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Bankshares||33.03%||12.41%||1.57%|
|First Financial Bankshares Competitors||19.70%||8.37%||0.88%|
First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. First Financial Bankshares pays out 46.9% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.7% of their earnings in the form of a dividend. First Financial Bankshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings and Valuation
This table compares First Financial Bankshares and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|First Financial Bankshares||$308.20 million||N/A||24.75|
|First Financial Bankshares Competitors||N/A||N/A||24.07|
First Financial Bankshares is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
First Financial Bankshares competitors beat First Financial Bankshares on 8 of the 14 factors compared.
About First Financial Bankshares
First Financial Bankshares, Inc. is a financial holding company. The Company, through its subsidiaries, conducts commercial banking business. As of December 31, 2016, the Company’s subsidiaries included First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc., Abilene, Texas; First Financial Trust & Asset Management Company, National Association, Abilene, Texas; First Financial Investments, Inc., Abilene, Texas, and First Financial Insurance Agency, Inc., Abilene, Texas. Its banking centers are located in Central, North Central, Southeast and West Texas. Its loan portfolio consists of loans made to businesses, professionals, individuals, and farm and ranch operations located in the primary trade areas served by its subsidiary bank. Its securities available-for-sale include the United States Treasury securities, Obligations of the United States Government sponsored enterprises and agencies and Obligations of states and political subdivisions.
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