Financial Contrast: First Republic Bank (FRC) & Yadkin Financial Corp (YDKN)
Yadkin Financial Corp (NYSE: YDKN) and First Republic Bank (NYSE:FRC) are both commercial banks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Yadkin Financial Corp and First Republic Bank’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Yadkin Financial Corp||N/A||N/A||N/A||$1.12||30.79|
|First Republic Bank||$2.38 billion||6.05||$673.42 million||$4.24||21.47|
First Republic Bank has higher revenue and earnings than Yadkin Financial Corp. First Republic Bank is trading at a lower price-to-earnings ratio than Yadkin Financial Corp, indicating that it is currently the more affordable of the two stocks.
First Republic Bank pays an annual dividend of $0.68 per share and has a dividend yield of 0.7%. Yadkin Financial Corp does not pay a dividend. First Republic Bank pays out 16.0% of its earnings in the form of a dividend. Yadkin Financial Corp has raised its dividend for 4 consecutive years.
This is a summary of current ratings and target prices for Yadkin Financial Corp and First Republic Bank, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Yadkin Financial Corp||0||0||0||0||N/A|
|First Republic Bank||0||8||6||0||2.43|
First Republic Bank has a consensus target price of $102.93, indicating a potential upside of 13.06%. Given First Republic Bank’s higher probable upside, analysts clearly believe First Republic Bank is more favorable than Yadkin Financial Corp.
Insider & Institutional Ownership
69.7% of Yadkin Financial Corp shares are held by institutional investors. Comparatively, 98.0% of First Republic Bank shares are held by institutional investors. 3.0% of Yadkin Financial Corp shares are held by 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.
Risk and Volatility
Yadkin Financial Corp has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
This table compares Yadkin Financial Corp and First Republic Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Yadkin Financial Corp||18.40%||5.41%||0.75%|
|First Republic Bank||26.85%||12.06%||0.94%|
First Republic Bank beats Yadkin Financial Corp on 10 of the 13 factors compared between the two stocks.
About Yadkin Financial Corp
Yadkin Financial Corporation is a bank holding company. The Company conducts its business operations through its subsidiary, Yadkin Bank, which is a chartered community bank that provides services in approximately 110 branches across North Carolina and South Carolina. Yadkin Bank provides banking, mortgage, investment and insurance services to businesses and consumers across the Carolinas. It operates through a segment, which is providing general commercial banking and financial services to individuals and businesses located in North Carolina and South Carolina, and to customers in various states through its Small Business Administration (SBA) lending program. It offers various loans, such as commercial and industrial (C&I) loans and government-guaranteed loans. The Company’s investment securities portfolio includes the United States Government-sponsored enterprise (GSE) obligations and securities guaranteed by the United States SBA. The Company’s primary source of funds is deposits.
About First Republic Bank
First Republic Bank is a commercial bank and trust company. The Bank specializes in providing services, including private banking, private business banking, real estate lending and wealth management services, including trust and custody services, to clients in selected metropolitan areas in the United States. It operates through two segments: Commercial Banking and Wealth Management. The Commercial Banking segment is engaged in attracting funds from the public; originating loans, primarily real estate secured mortgage loans, and investing in investment securities. The Wealth Management segment consists of First Republic Investment Management, Inc.; its money market mutual fund activities through third-party providers and the brokerage activities of First Republic Securities Company, LLC; First Republic Trust Company and First Republic Trust Company of Delaware LLC (the Trust Company), and its foreign exchange activities. It offers a range of internally managed investment services.
Receive News & Ratings for Yadkin Financial Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yadkin Financial Corp and related companies with MarketBeat.com's FREE daily email newsletter.