Head-To-Head Comparison: F.N.B. (NYSE:FNB) and Sturgis Bancorp (OTCMKTS:STBI)

F.N.B. (NYSE:FNB) and Sturgis Bancorp (OTCMKTS:STBI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for F.N.B. and Sturgis Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	0	4	0	3.00
Sturgis Bancorp	0	0	0	0	N/A

F.N.B. presently has a consensus price target of $15.00, suggesting a potential upside of 17.14%. Given F.N.B.’s higher possible upside, analysts clearly believe F.N.B. is more favorable than Sturgis Bancorp.

Profitability

This table compares F.N.B. and Sturgis Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F.N.B.	21.77%	9.98%	1.28%
Sturgis Bancorp	12.18%	N/A	N/A

Dividends

F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.1%. F.N.B. pays out 36.4% of its earnings in the form of a dividend. Sturgis Bancorp pays out 24.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sturgis Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares F.N.B. and Sturgis Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$2.23 billion	2.07	$485.00 million	$1.32	9.70
Sturgis Bancorp	$49.68 million	0.72	$6.02 million	$2.83	5.87

F.N.B. has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp is trading at a lower price-to-earnings ratio than F.N.B., indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.3% of F.N.B. shares are owned by institutional investors. 1.2% of F.N.B. shares are owned by insiders. Comparatively, 16.0% of Sturgis Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

F.N.B. has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Summary

F.N.B. beats Sturgis Bancorp on 11 of the 15 factors compared between the two stocks.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.