Cullen/Frost Bankers (NYSE: CFR) is one of 331 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare Cullen/Frost Bankers to similar businesses based on the strength of its earnings, dividends, profitability, risk, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cullen/Frost Bankers and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 0 11 2 0 2.15
Cullen/Frost Bankers Competitors 2099 8281 8378 324 2.36

Cullen/Frost Bankers currently has a consensus target price of $99.86, indicating a potential upside of 2.68%. As a group, “Banks” companies have a potential downside of 21.76%. Given Cullen/Frost Bankers’ higher possible upside, research analysts plainly believe Cullen/Frost Bankers is more favorable than its peers.

Profitability

This table compares Cullen/Frost Bankers and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 28.86% 11.64% 1.14%
Cullen/Frost Bankers Competitors 18.84% 8.83% 0.94%

Volatility & Risk

Cullen/Frost Bankers has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers’ peers have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Dividends

Cullen/Frost Bankers pays an annual dividend of $2.28 per share and has a dividend yield of 2.3%. Cullen/Frost Bankers pays out 43.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.1% of their earnings in the form of a dividend. Cullen/Frost Bankers has raised its dividend for 24 consecutive years.

Institutional & Insider Ownership

80.7% of Cullen/Frost Bankers shares are held by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are held by institutional investors. 5.2% of Cullen/Frost Bankers shares are held by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cullen/Frost Bankers and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cullen/Frost Bankers $1.14 billion $304.26 million 18.49
Cullen/Frost Bankers Competitors $5.45 billion $813.35 million 18.81

Cullen/Frost Bankers’ peers have higher revenue and earnings than Cullen/Frost Bankers. Cullen/Frost Bankers is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Cullen/Frost Bankers beats its peers on 8 of the 15 factors compared.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc. is a financial holding company and a bank holding company. The Company, through its subsidiaries, provides a range of products and services throughout Texas markets. The Company’s segments include Banking, Frost Wealth Advisors and Non-Banks. The Banking segment includes both commercial and consumer banking services, and Frost Insurance Agency. The Frost Wealth Advisors segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. The Non-Banks segment includes the direct and indirect ownership of its banking and non-banking subsidiaries and the issuance of debt and equity. It offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.

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