FB Financial (NYSE:FBK) vs. Bank7 (NASDAQ:BSVN) Financial Contrast

Bank7 (NASDAQ:BSVN) and FB Financial (NYSE:FBK) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Volatility and Risk

Bank7 has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, FB Financial has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

23.5% of Bank7 shares are held by institutional investors. Comparatively, 65.4% of FB Financial shares are held by institutional investors. 25.7% of Bank7 shares are held by insiders. Comparatively, 2.0% of FB Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bank7 and FB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank7	0	1	3	0	2.75
FB Financial	0	0	6	1	3.14

Bank7 presently has a consensus target price of $58.50, suggesting a potential upside of 7.16%. FB Financial has a consensus target price of $64.67, suggesting a potential upside of 19.68%. Given FB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe FB Financial is more favorable than Bank7.

Valuation & Earnings

This table compares Bank7 and FB Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank7	$98.41 million	5.28	$43.07 million	$4.37	12.49
FB Financial	$877.84 million	3.08	$122.62 million	$3.73	14.49

FB Financial has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Bank7 pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Bank7 pays out 27.5% of its earnings in the form of a dividend. FB Financial pays out 22.5% 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. Bank7 has increased its dividend for 5 consecutive years and FB Financial has increased its dividend for 8 consecutive years.

Profitability

This table compares Bank7 and FB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank7	30.36%	16.48%	2.18%
FB Financial	19.00%	12.08%	1.44%

Summary

FB Financial beats Bank7 on 11 of the 18 factors compared between the two stocks.

About Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

About FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.