Head-To-Head Contrast: BB&T (BBT) versus 1st Capital Bank (FISB)

BB&T (NYSE:BBT) and 1st Capital Bank (OTCMKTS:FISB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

BB&T has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, 1st Capital Bank has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Dividends

BB&T pays an annual dividend of $1.62 per share and has a dividend yield of 3.2%. 1st Capital Bank does not pay a dividend. BB&T pays out 51.6% of its earnings in the form of a dividend. BB&T has raised its dividend for 6 consecutive years.

Profitability

This table compares BB&T and 1st Capital Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BB&T 23.52% 11.66% 1.40%
1st Capital Bank N/A N/A N/A

Institutional & Insider Ownership

65.2% of BB&T shares are held by institutional investors. Comparatively, 7.0% of 1st Capital Bank shares are held by institutional investors. 0.5% of BB&T shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for BB&T and 1st Capital Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BB&T 0 7 13 0 2.65
1st Capital Bank 0 0 0 0 N/A

BB&T currently has a consensus price target of $55.53, suggesting a potential upside of 8.02%. Given BB&T’s higher probable upside, equities analysts plainly believe BB&T is more favorable than 1st Capital Bank.

Valuation & Earnings

This table compares BB&T and 1st Capital Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BB&T $12.16 billion 3.26 $2.39 billion $3.14 16.37
1st Capital Bank $16.32 million 5.20 $2.38 million N/A N/A

BB&T has higher revenue and earnings than 1st Capital Bank.

Summary

BB&T beats 1st Capital Bank on 12 of the 14 factors compared between the two stocks.

BB&T Company Profile

BB&T Corporation operates as a financial holding company that provides various banking and trust services for small and mid-size businesses, public agencies, local governments, and individuals. The company operates through four segments: CB-Retail, CB-Commercial, IH&PF, and FS&CF. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides various funding services; and asset management, automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, commercial general liability, surety, title and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital markets, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, commercial middle market lending, floor plan lending, commercial mortgage lending, mortgage warehouse lending, private equity investments, real estate lending, and supply chain management services. Further, the company provides retail brokerage, equity and debt underwriting, investment advice, corporate finance, and equity research services, as well as facilitates the origination, trading, and distribution of fixed-income securities and equity products. Additionally, BB&T Corporation offers non-deposit investment products, including discount brokerage services, equities, fixed-rate, variable-rate and index annuities, mutual funds, government and municipal bonds, and money market funds. As of October 16, 2018, it operated through approximately 1,900 financial centers. The company was founded in 1872 and is headquartered in Winston-Salem, North Carolina.

1st Capital Bank Company Profile

1st Capital Bank provides various banking products and services to businesses, professionals, real estate investors, family commercial entities, and individuals in the central coast region of California. Its deposit products include personal and business checking, savings, money market, and certificates of deposit accounts, as well as individual retirement accounts and health savings accounts. The company also offers business loans and lines of credit, such as long term loans for fixed-asset purchases and permanent working capital, asset-based lines of credit to cover accounts receivables and inventory, short term lines of credit to support short-term seasonal working capital needs or inventory purchases, equipment financing, and acquisition financing; and commercial real estate loans comprising term loans for the purchase or refinance of commercial and multi-family residential properties; and personal loans for business owners. In addition, it provides agriculture and wine industry lending products, including long or short term loans for crops, orchards, winery, and vineyard development; real estate purchases or debt refinancing; machinery and equipment purchase; and building improvements, as well as lines of credit for seasonal needs. Further, the company offers small business administration and government guaranteed lending solutions; debit cards; cash management services that include ACH origination, online wire transfer, check reconciliation, merchant card, and remote deposit capture services; and remote check scanning, remote branch deposit, online banking, telephone banking, courier, electronic bill payment, mobile banking, and remote wire request services, as well as invests in securities. It operates through full service branch offices in Monterey, Salinas, King City, and San Luis Obispo, California. The company was incorporated in 2006 and is based in Salinas, California.

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