Associated Banc-Corp (NYSE: ASB) and F.N.B. Corporation (NYSE:FNB) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Earnings & Valuation

This table compares Associated Banc-Corp and F.N.B. Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Associated Banc-Corp $1.02 billion 3.32 $210.79 million $1.39 16.08
F.N.B. Corporation $878.51 million 4.71 $252.12 million $0.78 16.42

F.N.B. Corporation has higher revenue, but lower earnings than Associated Banc-Corp. Associated Banc-Corp is trading at a lower price-to-earnings ratio than F.N.B. Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Associated Banc-Corp and F.N.B. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Associated Banc-Corp 18.78% 7.43% 0.75%
F.N.B. Corporation 19.43% 6.97% 0.90%

Insider & Institutional Ownership

77.5% of Associated Banc-Corp shares are held by institutional investors. Comparatively, 76.4% of F.N.B. Corporation shares are held by institutional investors. 1.8% of Associated Banc-Corp shares are held by insiders. Comparatively, 1.2% of F.N.B. Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Associated Banc-Corp pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. F.N.B. Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. Associated Banc-Corp pays out 34.5% of its earnings in the form of a dividend. F.N.B. Corporation pays out 61.5% 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.

Analyst Ratings

This is a summary of current ratings and price targets for Associated Banc-Corp and F.N.B. Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Associated Banc-Corp 0 10 2 0 2.17
F.N.B. Corporation 0 2 8 1 2.91

Associated Banc-Corp currently has a consensus target price of $25.00, indicating a potential upside of 11.86%. F.N.B. Corporation has a consensus target price of $17.50, indicating a potential upside of 36.61%. Given F.N.B. Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe F.N.B. Corporation is more favorable than Associated Banc-Corp.

Volatility and Risk

Associated Banc-Corp has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, F.N.B. Corporation has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Summary

F.N.B. Corporation beats Associated Banc-Corp on 9 of the 17 factors compared between the two stocks.

About Associated Banc-Corp

Associated Banc-Corp is a bank holding company. The Company, through its banking subsidiary Associated Bank, National Association (the Bank) and various nonbanking subsidiaries, provides a range of banking and non-banking products and services to individuals. The Company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business, and Risk Management and Shared Services. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are shared functions.

About F.N.B. Corporation

F.N.B. Corporation is a financial holding company. The Company operates through four segments: Community Banking, Wealth Management, Insurance and Consumer Finance. Its Community Banking segment consists of First National Bank of Pennsylvania (FNBPA), which offers services, including commercial and individual demand, savings and time deposit accounts and commercial, mortgage and individual installment loans. It operates its Community Banking business through a network of over 290 branches in Pennsylvania, Ohio, Maryland and West Virginia. Its Wealth Management segment delivers wealth management services to individuals, corporations and retirement funds, as well as existing customers of Community Banking. The Company’s Insurance segment operates principally through First National Insurance Agency, LLC (FNIA), which is a subsidiary of the Corporation. Its Consumer Finance segment operates through its subsidiary, Regency Finance Company. It also operates other non-banking subsidiaries.

Receive News & Ratings for Associated Banc-Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Associated Banc-Corp and related companies with Analyst Ratings Network's FREE daily email newsletter.