Head-To-Head Review: FCB Financial (FCB) & WesBanco (WSBC)

WesBanco (NASDAQ:WSBC) and FCB Financial (NYSE:FCB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares WesBanco and FCB Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WesBanco $421.26 million 5.26 $94.48 million $2.45 16.55
FCB Financial $409.12 million 4.17 $125.19 million $3.28 11.10

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

Profitability

This table compares WesBanco and FCB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WesBanco 24.22% 9.04% 1.29%
FCB Financial 29.45% 13.02% 1.44%

Analyst Recommendations

This is a summary of recent ratings and target prices for WesBanco and FCB Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WesBanco 0 3 1 0 2.25
FCB Financial 0 3 3 0 2.50

WesBanco presently has a consensus price target of $47.00, indicating a potential upside of 15.91%. FCB Financial has a consensus price target of $55.60, indicating a potential upside of 52.75%. Given FCB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe FCB Financial is more favorable than WesBanco.

Insider and Institutional Ownership

57.0% of WesBanco shares are owned by institutional investors. Comparatively, 89.1% of FCB Financial shares are owned by institutional investors. 4.1% of WesBanco shares are owned by company insiders. Comparatively, 9.6% of FCB Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

WesBanco has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, FCB Financial has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Dividends

WesBanco pays an annual dividend of $1.16 per share and has a dividend yield of 2.9%. FCB Financial does not pay a dividend. WesBanco pays out 47.3% of its earnings in the form of a dividend. WesBanco has raised its dividend for 7 consecutive years.

Summary

FCB Financial beats WesBanco on 12 of the 17 factors compared between the two stocks.

WesBanco Company Profile

WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2017, the company operated through 172 branches and 160 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1968 and is headquartered in Wheeling, West Virginia.

FCB Financial Company Profile

FCB Financial Holdings, Inc. operates as the bank holding company for Florida Community Bank, N.A. that provides various financial products and services to individuals, small and medium-sized businesses, large businesses, and other local organizations and entities in south and central Florida. The company offers various deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit; checking products; and money market accounts and IRAs. It also offers consumer loans, such as personal and auto loans, recreational loans, and home improvement/second mortgage loans. In addition, the company provides commercial credit products, such as lines of credit to finance working capital and trade activities; loans for owner occupied real estate financing; equipment financing; acquisition financing; construction financing, mini-permanent and permanent financing, acquisition and development lending, land financing, and bridge lending services to commercial real estate clients; and specialty financing services to owners and operators in the areas of aviation and marine lending, as well as participates in club lending structures. Further, it offers syndicated loans; credit cards and purchasing cards; and derivative products, such as interest rate swaps; treasury products; securities brokerage services, investment advice, and investment recommendations; and online and mobile banking, safe deposit boxes, and payment services. As of December 31, 2017, FCB Financial Holdings, Inc. operated through a network of 46 banking centers in Florida. The company was formerly known as Bond Street Holdings, Inc. and changed its name to FCB Financial Holdings, Inc. in June 2014. FCB Financial Holdings, Inc. was founded in 1923 and is headquartered in Weston, Florida.

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