Regions Financial (RF) vs. SmartFinancial (SMBK) Head-To-Head Analysis

Regions Financial (NYSE:RF) and SmartFinancial (NASDAQ:SMBK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Dividends

Regions Financial pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. SmartFinancial does not pay a dividend. Regions Financial pays out 56.0% of its earnings in the form of a dividend. Regions Financial has raised its dividend for 5 consecutive years.

Risk and Volatility

Regions Financial has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares Regions Financial and SmartFinancial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regions Financial $6.09 billion 2.24 $1.26 billion $1.00 13.23
SmartFinancial $57.00 million 4.32 $5.01 million $1.11 15.94

Regions Financial has higher revenue and earnings than SmartFinancial. Regions Financial is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Regions Financial and SmartFinancial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regions Financial 26.39% 10.15% 1.21%
SmartFinancial 13.11% 7.62% 0.92%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Regions Financial and SmartFinancial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regions Financial 2 5 6 1 2.43
SmartFinancial 0 2 2 0 2.50

Regions Financial currently has a consensus target price of $18.43, indicating a potential upside of 39.27%. SmartFinancial has a consensus target price of $25.50, indicating a potential upside of 44.15%. Given SmartFinancial’s stronger consensus rating and higher possible upside, analysts clearly believe SmartFinancial is more favorable than Regions Financial.

Insider & Institutional Ownership

76.9% of Regions Financial shares are owned by institutional investors. Comparatively, 34.1% of SmartFinancial shares are owned by institutional investors. 0.8% of Regions Financial shares are owned by company insiders. Comparatively, 12.0% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Regions Financial beats SmartFinancial on 11 of the 18 factors compared between the two stocks.

Regions Financial Company Profile

Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. Its Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending, as well as equipment lease financing services and corresponding deposits. This segment serves corporate, middle market, and commercial real estate developers and investors. The company's Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards, and other consumer loans, as well as the corresponding deposit relationships. Its Wealth Management segment offers wealth management products and services, including credit related products, trust and investment management, asset management, retirement and savings solutions, estate planning, and personal and commercial insurance products to individuals, businesses, governmental institutions, and non-profit entities. The company also provides insurance coverage for various lines of personal and commercial insurance, such as property, vehicle, casualty, life, health, and accident insurance, as well as crop and life insurance; services related to employee benefits and wholesale insurance broking; and equipment financing products, as well as offers securities and advisory services. In addition, it offers securities brokerage, merger and acquisition advisory, trust, and other specialty financing services. As of February 8, 2018, the company operated 1,500 banking offices and 1,900 ATMs. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

SmartFinancial Company Profile

SmartFinancial, Inc. operates as the bank holding company for the SmartBank that provides various financial services to individuals and corporate customers in the United States. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, including commercial, financial, and agricultural loans, and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2017, it operated through 22 full-service branches located in Tennessee, Alabama, and Florida; and 1 loan production office, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

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