Financial Comparison: F.N.B. (NYSE:FNB) vs. Southern First Bancshares (NASDAQ:SFST)

Southern First Bancshares (NASDAQ:SFST) and F.N.B. (NYSE:FNB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

Southern First Bancshares has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares Southern First Bancshares and F.N.B.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern First Bancshares	$187.46 million	1.95	$13.43 million	$1.73	25.93
F.N.B.	$2.23 billion	2.79	$485.00 million	$1.09	15.86

F.N.B. has higher revenue and earnings than Southern First Bancshares. F.N.B. is trading at a lower price-to-earnings ratio than Southern First Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Southern First Bancshares and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern First Bancshares	6.67%	4.42%	0.34%
F.N.B.	16.29%	8.49%	1.10%

Institutional & Insider Ownership

75.0% of Southern First Bancshares shares are owned by institutional investors. Comparatively, 79.3% of F.N.B. shares are owned by institutional investors. 7.6% of Southern First Bancshares shares are owned by company insiders. Comparatively, 1.2% of F.N.B. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Southern First Bancshares and F.N.B., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern First Bancshares	0	0	1	0	3.00
F.N.B.	0	1	5	0	2.83

Southern First Bancshares currently has a consensus target price of $44.00, indicating a potential downside of 1.92%. F.N.B. has a consensus target price of $16.83, indicating a potential downside of 2.64%. Given Southern First Bancshares’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Southern First Bancshares is more favorable than F.N.B..

Summary

F.N.B. beats Southern First Bancshares on 9 of the 14 factors compared between the two stocks.

About Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.