First Horizon (NYSE:FHN – Get Free Report) and Shore Bancshares (NASDAQ:SHBI – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Valuation & Earnings
This table compares First Horizon and Shore Bancshares’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Horizon | $5.03 billion | 1.74 | $897.00 million | $1.43 | 11.05 |
Shore Bancshares | $247.24 million | 1.51 | $11.23 million | $0.58 | 19.33 |
First Horizon has higher revenue and earnings than Shore Bancshares. First Horizon is trading at a lower price-to-earnings ratio than Shore Bancshares, indicating that it is currently the more affordable of the two stocks.
Dividends
Institutional & Insider Ownership
80.3% of First Horizon shares are held by institutional investors. Comparatively, 59.8% of Shore Bancshares shares are held by institutional investors. 0.9% of First Horizon shares are held by insiders. Comparatively, 8.6% of Shore Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares First Horizon and Shore Bancshares’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Horizon | 16.07% | 8.96% | 0.92% |
Shore Bancshares | 5.66% | 7.55% | 0.68% |
Risk & Volatility
First Horizon has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for First Horizon and Shore Bancshares, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Horizon | 0 | 4 | 9 | 1 | 2.79 |
Shore Bancshares | 0 | 1 | 1 | 0 | 2.50 |
First Horizon presently has a consensus target price of $16.15, suggesting a potential upside of 2.24%. Shore Bancshares has a consensus target price of $14.50, suggesting a potential upside of 29.35%. Given Shore Bancshares’ higher probable upside, analysts clearly believe Shore Bancshares is more favorable than First Horizon.
Summary
First Horizon beats Shore Bancshares on 12 of the 16 factors compared between the two stocks.
About First Horizon
First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.
About Shore Bancshares
Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.
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