Peoples Financial (OTCMKTS:PFBX) vs. F.N.B. (NYSE:FNB) Critical Survey

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Peoples Financial and F.N.B., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Financial	0	0	0	0	0.00
F.N.B.	0	0	6	0	3.00

F.N.B. has a consensus target price of $20.20, indicating a potential upside of 15.07%. Given F.N.B.’s stronger consensus rating and higher probable upside, analysts plainly believe F.N.B. is more favorable than Peoples Financial.

Institutional and Insider Ownership

32.8% of Peoples Financial shares are held by institutional investors. Comparatively, 79.3% of F.N.B. shares are held by institutional investors. 28.1% of Peoples Financial shares are held by company insiders. Comparatively, 1.5% of F.N.B. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Peoples Financial has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Dividends

Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Peoples Financial pays out 40.9% of its earnings in the form of a dividend. F.N.B. pays out 29.6% 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. F.N.B. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peoples Financial	10.97%	4.09%	0.54%
F.N.B.	21.64%	8.94%	1.19%

Earnings & Valuation

This table compares Peoples Financial and F.N.B.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Financial	$35.66 million	2.75	$3.91 million	$0.88	24.15
F.N.B.	$2.69 billion	2.32	$565.00 million	$1.62	10.84

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

Summary

F.N.B. beats Peoples Financial on 13 of the 16 factors compared between the two stocks.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.

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.