SmartFinancial (NASDAQ:SMBK) and Regions Financial (NYSE:RF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
Regions Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. SmartFinancial does not pay a dividend. Regions Financial pays out 56.0% of its earnings in the form of a dividend. Regions Financial has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
34.1% of SmartFinancial shares are held by institutional investors. Comparatively, 76.9% of Regions Financial shares are held by institutional investors. 12.0% of SmartFinancial shares are held by company insiders. Comparatively, 0.8% of Regions Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares SmartFinancial and Regions Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SmartFinancial||$57.00 million||4.40||$5.01 million||$1.11||16.23|
|Regions Financial||$6.09 billion||2.50||$1.26 billion||$1.00||14.71|
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.
Volatility & Risk
SmartFinancial has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Regions Financial has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
This table compares SmartFinancial and Regions Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for SmartFinancial and Regions Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SmartFinancial presently has a consensus price target of $25.50, suggesting a potential upside of 41.59%. Regions Financial has a consensus price target of $18.28, suggesting a potential upside of 24.28%. Given SmartFinancial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SmartFinancial is more favorable than Regions Financial.
Regions Financial beats SmartFinancial on 11 of the 18 factors compared between the two stocks.
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.
About Regions Financial
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.
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