Contrasting Franklin Financial Services (FRAF) & The Competition

Franklin Financial Services (NASDAQ:FRAF) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Franklin Financial Services to similar businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Volatility & Risk

Franklin Financial Services has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Franklin Financial Services’ rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Profitability

This table compares Franklin Financial Services and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Financial Services	20.43%	15.52%	1.21%
Franklin Financial Services Competitors	15.63%	9.45%	0.93%

Institutional and Insider Ownership

24.8% of Franklin Financial Services shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 5.9% of Franklin Financial Services shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Franklin Financial Services and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Financial Services	0	1	1	0	2.50
Franklin Financial Services Competitors	7458	30166	27723	1451	2.35

Franklin Financial Services currently has a consensus price target of $68.00, indicating a potential downside of 6.32%. As a group, “Banks” companies have a potential upside of 15.44%. Given Franklin Financial Services’ rivals higher probable upside, analysts clearly believe Franklin Financial Services has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Franklin Financial Services and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Financial Services	$133.55 million	$21.23 million	11.73
Franklin Financial Services Competitors	$37.86 billion	$2.41 billion	16.76

Franklin Financial Services’ rivals have higher revenue and earnings than Franklin Financial Services. Franklin Financial Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Franklin Financial Services pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Franklin Financial Services pays out 22.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Franklin Financial Services has increased its dividend for 1 consecutive years.

Summary

Franklin Financial Services rivals beat Franklin Financial Services on 9 of the 15 factors compared.

About Franklin Financial Services

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.