First Interstate BancSystem (NASDAQ: FIBK – Get Rating) and First Bank (NASDAQ: FRBA – Get Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
This table compares First Interstate BancSystem and First Bank’s net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|First Interstate BancSystem:||14.78%||7.09%||0.73%|
Volatility and Risk:
First Interstate BancSystem has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, First Bank has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Valuation & Earnings:
This table compares First Interstate BancSystem and First Bank’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|First Interstate BancSystem:||$ 656.00 million:||6.06:||$ 192.10 million:||$ 1.92:||18.92:|
|First Bank:||$ 98.87 million:||2.61:||$ 35.43 million:||$ 1.72:||8.01:|
First Interstate BancSystem has higher revenue and earnings than First Bank. First Bank is trading at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the most affordable of the two stocks.
First Interstate BancSystem pays an annual dividend of $ 1.64 per share and has a dividend yield of 4.5%. First Bank pays an annual dividend of $ 0.24 per share and has a dividend yield of 1.7%. First Interstate BancSystem pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Bank pays out 14.0% of its earnings in the form of a dividend. First Interstate BancSystem has increased its dividend for 9 consecutive years and First Bank has increased its dividend for 1 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current recommendations and price targets for First Interstate BancSystem and First Bank, as provided by MarketBeat.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|First Interstate BancSystem:||0:||0:||3:||0:||3.00:|
First Interstate BancSystem presently has a consensus target price of $ 44.00, suggesting a potential upside of 21.15%. Given First Interstate BancSystem’s higher probable upside, analysts clearly believe First Interstate BancSystem is more favorable than First Bank.
Insider & Institutional Ownership:
69.4% of First Interstate BancSystem shares are held by institutional investors. 6.4% of First Interstate BancSystem shares are held 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.
First Interstate BancSystem beats First Bank on 12 of the 16 factors compared between the two stocks.
First Interstate BancSystem Company Profile: (Get Rating)
First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, and other operational services, as well as online and mobile banking services. It serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, energy, governmental services, healthcare, hospitality, housing, mining, professional services, real estate development, retail, technology, tourism, and wholesale trade. As of December 31, 2021, it operated 147 banking offices, including detached drive-up facilities in communities across Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is headquartered in Billings, Montana.
First Bank Company Profile: (Get Rating)
First Bank provides various banking products and services to individuals, businesses, and governmental entities. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans that include auto, personal, and traditional installment loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services. As of December 31, 2021, it operated 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton, Lawrence, Mercerville, Pennington, Randolph, Somerset, and Williamstown counties in New Jersey, as well as Doylestown, Trevose, Warminster, and West Chester counties in Pennsylvania. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.
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