Cape Bancorp (NASDAQ: CBNJ) and First Horizon National Corporation (NYSE:FHN) are both banks – nec companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Valuation and Earnings

This table compares Cape Bancorp and First Horizon National Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cape Bancorp N/A N/A N/A $0.92 15.86
First Horizon National Corporation $1.37 billion 3.22 $227.04 million $1.12 16.84

First Horizon National Corporation has higher revenue and earnings than Cape Bancorp. Cape Bancorp is trading at a lower price-to-earnings ratio than First Horizon National Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cape Bancorp and First Horizon National Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cape Bancorp 13.12% 4.73% 0.50%
First Horizon National Corporation 19.36% 9.40% 0.86%

Insider & Institutional Ownership

85.0% of First Horizon National Corporation shares are owned by institutional investors. 2.1% of First Horizon National Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Cape Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, First Horizon National Corporation has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Dividends

First Horizon National Corporation pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Cape Bancorp does not pay a dividend. First Horizon National Corporation pays out 32.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Cape Bancorp and First Horizon National Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cape Bancorp 0 0 0 0 N/A
First Horizon National Corporation 0 9 5 0 2.36

First Horizon National Corporation has a consensus target price of $20.25, suggesting a potential upside of 7.37%. Given First Horizon National Corporation’s higher possible upside, analysts plainly believe First Horizon National Corporation is more favorable than Cape Bancorp.

Summary

First Horizon National Corporation beats Cape Bancorp on 11 of the 12 factors compared between the two stocks.

Cape Bancorp Company Profile

Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.

First Horizon National Corporation Company Profile

First Horizon National Corporation (FHN) is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank). The Company has four segments: regional banking, fixed income, corporate and non-strategic. The Company’s regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and other selected markets. The regional banking segment provides investments and financial planning. The Company’s fixed income segment consists of fixed income securities sales, trading, and strategies for institutional clients in the United States and abroad. The Company’s corporate segment consists of funds management, tax credit investment activities and gains on the extinguishment of debt, among others. The non-strategic segment offers wind-down national consumer lending activities and mortgage banking elements.

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