FCB Financial (NYSE:FCB) and Green Bancorp (NASDAQ:GNBC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Insider and Institutional Ownership

89.1% of FCB Financial shares are held by institutional investors. Comparatively, 68.3% of Green Bancorp shares are held by institutional investors. 9.6% of FCB Financial shares are held by insiders. Comparatively, 14.0% of Green Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FCB Financial and Green Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FCB Financial 29.45% 13.02% 1.44%
Green Bancorp 20.51% 12.15% 1.34%

Dividends

Green Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. FCB Financial does not pay a dividend. Green Bancorp pays out 33.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FCB Financial and Green Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FCB Financial 0 3 2 0 2.40
Green Bancorp 0 1 2 0 2.67

FCB Financial presently has a consensus target price of $53.25, suggesting a potential upside of ∞. Green Bancorp has a consensus target price of $29.00, suggesting a potential upside of 69.19%. Given FCB Financial’s higher possible upside, equities analysts clearly believe FCB Financial is more favorable than Green Bancorp.

Earnings & Valuation

This table compares FCB Financial and Green Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FCB Financial $409.12 million 0.00 $125.19 million $3.28 N/A
Green Bancorp $190.76 million 3.36 $34.13 million $1.21 14.17

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

Volatility and Risk

FCB Financial has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Summary

FCB Financial beats Green Bancorp on 9 of the 14 factors compared between the two stocks.

About FCB Financial

FCB Financial Holdings, Inc. operates as the bank holding company for Florida Community Bank, N.A. that provides various financial products and services to individuals, small and medium-sized businesses, large businesses, and other local organizations and entities in south and central Florida. The company offers various deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit; checking products; and money market accounts and IRAs. It also offers consumer loans, such as personal and auto loans, recreational loans, and home improvement/second mortgage loans. In addition, the company provides commercial credit products, such as lines of credit to finance working capital and trade activities; loans for owner occupied real estate financing; equipment financing; acquisition financing; construction financing, mini-permanent and permanent financing, acquisition and development lending, land financing, and bridge lending services to commercial real estate clients; and specialty financing services to owners and operators in the areas of aviation and marine lending, as well as participates in club lending structures. Further, it offers syndicated loans; credit cards and purchasing cards; and derivative products, such as interest rate swaps; treasury products; securities brokerage services, investment advice, and investment recommendations; and online and mobile banking, safe deposit boxes, and payment services. As of December 31, 2017, FCB Financial Holdings, Inc. operated through a network of 46 banking centers in Florida. The company was formerly known as Bond Street Holdings, Inc. and changed its name to FCB Financial Holdings, Inc. in June 2014. FCB Financial Holdings, Inc. was founded in 1923 and is headquartered in Weston, Florida.

About Green Bancorp

Green Bancorp, Inc. operates as the bank holding company for Green Bank, N.A. that provides commercial and private banking services primarily in Texas. It offers deposit accounts, such as demand, savings, money market, and time accounts. The company also provides loans, including commercial and industrial loans, including commercial lines of credit, working capital loans, commercial real estate-backed loans, mortgage-warehouse lines, term loans, equipment financing, borrowing base loans, real estate construction loans, homebuilder loans, government guaranteed loans, purchased receivables financing, letters of credit, and other loan products, as well as acquisition, expansion, and development loans to national and regional companies, real estate developers, mortgage lenders, manufacturing and industrial companies, and other businesses. In addition, it offers various consumer loans, such as residential real estate loans, home equity loans, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. Further, the company provides a range of online banking solutions, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and extended drive-through hours, and ATMs, as well as banking through telephone, mail, and personal appointment. Additionally, it offers debit cards, night depository services, direct deposits, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company provides its services through 22 full service branches in the greater Houston and Dallas metropolitan areas, as well as in Austin, Louisville, and Honey Grove. Green Bancorp, Inc. was founded in 1999 and is headquartered in Houston, Texas.

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