UBS Group (NYSE:UBS) and F.N.B. (NYSE:FNB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

UBS Group pays an annual dividend of $0.69 per share and has a dividend yield of 5.8%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. UBS Group pays out 48.9% of its earnings in the form of a dividend. F.N.B. pays out 42.5% 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.

Risk and Volatility

UBS Group has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, F.N.B. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares UBS Group and F.N.B.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UBS Group $41.26 billion 1.11 $4.90 billion $1.41 8.43
F.N.B. $1.45 billion 2.34 $373.00 million $1.13 9.23

UBS Group has higher revenue and earnings than F.N.B.. UBS Group is trading at a lower price-to-earnings ratio than F.N.B., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares UBS Group and F.N.B.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UBS Group 12.55% 9.82% 0.54%
F.N.B. 25.65% 8.42% 1.14%

Analyst Ratings

This is a summary of recent ratings and target prices for UBS Group and F.N.B., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UBS Group 0 2 2 0 2.50
F.N.B. 0 1 3 0 2.75

F.N.B. has a consensus price target of $16.33, indicating a potential upside of 56.60%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts clearly believe F.N.B. is more favorable than UBS Group.

Institutional & Insider Ownership

34.7% of UBS Group shares are owned by institutional investors. Comparatively, 77.6% of F.N.B. shares are owned by institutional investors. 1.0% of UBS Group shares are owned by insiders. Comparatively, 0.6% of F.N.B. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

F.N.B. beats UBS Group on 10 of the 16 factors compared between the two stocks.

UBS Group Company Profile

UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through five divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management, and Investment Bank. The Wealth Management division offers advisory and financial services to wealthy private clients. This segment provides banking and lending solutions, wealth planning, investment management solutions, and corporate finance advice. The Wealth Management Americas division offers wealth management solutions designed to address the needs of high and ultra high net worth clients. This division operates the United States and Canadian wealth management businesses; and international business booked in the United States. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients in Switzerland. The Asset Management division offers investment management products and services comprising equities, asset allocation and currency investment strategies, hedge funds, fixed income products, real estate strategies, and infrastructure and private equity products; multi-manager hedge fund solutions and advisory services; and customized multi-asset solutions and advisory services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions, as well as risk management services, such as corporate lending and associated hedging for wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

F.N.B. Company Profile

F.N.B. Corporation, a financial holding company, provides a range of financial services primarily to consumers, corporations, governments, and small- to medium-sized businesses. The company operates through four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. It offers commercial banking solutions, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. The company also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services; and wealth management services comprising asset management, private banking, and insurance services. As of December 31, 2017, it operated 417 community banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, and South Carolina; and 77 consumer finance offices in Pennsylvania, Ohio, Tennessee, and Kentucky. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

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