Review of Cadence Bank (NYSE:CADE) and FB Financial (NYSE:FBK)


FB Financial (NYSE:FBK – Get Rating) and Cadence Bank (NYSE:CADE – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on their dividend strength, analyst recommendations, risk, institutional ownership, earnings, valuation, and profitability.

Profitability

This table compares the net margins, return on equity and return on assets of FB Financial and Cadence Bank.

Net margins Return on equity return on assets
FB Financial 29.35% 11.66% 1.33%
Cadence bank 15.87% 10.92% 1.11%

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of FB Financial and Cadence Bank.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
FB Financial $613.25 million 2.97 $190.29 million $3.60 10.72
Cadence bank $1.26 billion 2.07 $195.16 million $1.72 13.95

Cadence Bank has higher revenue and profit than FB Financial. FB Financial trades at a lower price-to-earnings ratio than Cadence Bank, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

FB Financial has a beta of 1.07, which means its stock price is 7% more volatile than the S&P 500. In comparison, Cadence Bank has a beta of 1.04, which means its stock price is 4% more volatile than the S&P 500.

Analyst Notes

This is a summary of recent recommendations for FB Financial and Cadence Bank, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
FB Financial 0 0 4 0 3.00
Cadence bank 0 0 3 1 3.25

FB Financial currently has a consensus target price of $48.25, suggesting a potential upside of 25.06%. Cadence Bank has a consensus target price of $36.25, suggesting a potential upside of 51.10%. Given Cadence Bank’s stronger consensus rating and higher likely upside, analysts clearly believe Cadence Bank is more favorable than FB Financial.

Dividends

FB Financial pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Cadence Bank pays an annual dividend of $0.88 per share and has a dividend yield of 3.7%. FB Financial pays 14.4% of its profits as a dividend. Cadence Bank pays 51.2% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. FB Financial has increased its dividend for 3 consecutive years and Cadence Bank has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

63.6% of FB Financial shares are held by institutional investors. By comparison, 71.0% of Cadence Bank’s shares are held by institutional investors. 1.9% of FB Financial shares are held by insiders. By comparison, 2.2% of Cadence Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

About FB Financial (Get an assessment)

FB Financial Corporation operates as a bank holding company for FirstBank which provides a suite of commercial and consumer banking services to businesses, professionals and individuals. The Company operates in two segments, banking and mortgage. It offers checking, demand, money market and savings accounts; corporate, business and consumer deposit and lending products and services; and term deposits and certificates of deposits, as well as mortgage loan origination activities. The Company also offers commercial real estate, 1-4 family residential real estate, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit and land development loans; and consumer and other loans, such as loans for cars, boats and other recreational vehicles, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch networks in the southeastern United States; an Internet distribution channel; and trust, insurance and investment services, as well as online and mobile banking. As of December 31, 2021, it operated 82 full-service bank branches and 9 limited-service branches in Tennessee, northern Alabama, southern Kentucky, and northern Georgia; and 23 mortgage offices throughout the Southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

About Cadence Bank (Get an assessment)

Cadence Bank LogoCadence Bank provides commercial banking and financial services in the United States. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, corporate and business banking, cash management, specialty and asset-based lending, commercial real estate, equipment finance and correspondent banking. The Company’s products and services also include small business lending, foreign exchange, wealth management, investments and trusts, financial planning, pension plan management and insurance services to individuals and businesses. As of March 3, 2022, it operated approximately 400 branches in the South, Midwest and Texas. The company was incorporated in 1876 and is based in Tupelo, Mississippi.



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