Head to Head Survey: First National of Nebraska (OTCMKTS:FINN) and Western Alliance Bancorporation (NYSE:WAL)

Western Alliance Bancorporation (NYSE:WAL) and First National of Nebraska (OTCMKTS:FINN) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Volatility & Risk

Western Alliance Bancorporation has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, First National of Nebraska has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Valuation and Earnings

This table compares Western Alliance Bancorporation and First National of Nebraska”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$5.37 billion	1.45	$969.00 million	$8.73	8.09
First National of Nebraska	$3.23 billion	1.40	$412.43 million	N/A	N/A

Western Alliance Bancorporation has higher revenue and earnings than First National of Nebraska.

Analyst Recommendations

This is a summary of current recommendations and price targets for Western Alliance Bancorporation and First National of Nebraska, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	4	11	0	2.73
First National of Nebraska	0	0	0	0	0.00

Western Alliance Bancorporation presently has a consensus price target of $97.73, suggesting a potential upside of 38.33%. Given Western Alliance Bancorporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Western Alliance Bancorporation is more favorable than First National of Nebraska.

Profitability

This table compares Western Alliance Bancorporation and First National of Nebraska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	18.04%	13.33%	1.10%
First National of Nebraska	N/A	N/A	N/A

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.4%. First National of Nebraska pays an annual dividend of $160.00 per share and has a dividend yield of 1.0%. Western Alliance Bancorporation pays out 19.2% of its earnings in the form of a dividend. Western Alliance Bancorporation has increased its dividend for 5 consecutive years. Western Alliance Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

79.2% of Western Alliance Bancorporation shares are held by institutional investors. Comparatively, 0.7% of First National of Nebraska shares are held by institutional investors. 2.8% of Western Alliance Bancorporation shares are held by insiders. Comparatively, 41.7% of First National of Nebraska shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Western Alliance Bancorporation beats First National of Nebraska on 13 of the 15 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About First National of Nebraska

First National of Nebraska, Inc. operates as the bank holding company for First National Bank of Omaha that provides various banking products and services. The company offers checking, savings, and individual retirement accounts; certificates of deposit; and credit cards. It also provides personal loans and lines of credit; auto loans; mortgage loans; home equity lines of credit and loans; small business loans and lines of credit; small business administration loans; and commercial lending solutions. In addition, the company offers treasury management, debt consolidation, financial planning, retirement planning, wealth management, merchant, and payroll services; and personal, commercial, and farm insurance products. Further, it provides solutions for agribusiness, commercial real estate, healthcare, transportation, and correspondent banking; investment services, such as capital market and institutional asset management; and digital banking services. First National of Nebraska, Inc. was founded in 1857 and is headquartered in Omaha, Nebraska.