First Financial Bankshares (NASDAQ: FFIN – Get Rating) and State Street (NYSE: STT – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Volatility & Risk:
First Financial Bankshares has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, State Street has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Earnings and Valuation:
This table compares First Financial Bankshares and State Street’s revenue, earnings per share and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|First Financial Bankshares:||$ 518.58 million:||10.53:||$ 227.56 million:||$ 1.58:||24.22:|
|State Street:||$ 12.03 billion:||1.88:||$ 2.69 billion:||$ 7.38:||8.37:|
State Street has higher revenue and earnings than First Financial Bankshares. State Street is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the most affordable of the two stocks.
This is a breakdown of recent ratings for First Financial Bankshares and State Street, as reported by MarketBeat.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|First Financial Bankshares:||0:||2:||0:||0:||2.00:|
First Financial Bankshares presently has a consensus price target of $ 46.59, suggesting a potential upside of 21.76%. State Street has a consensus price target of $ 98.75, suggesting a potential upside of 59.92%. Given State Street’s stronger consensus rating and higher probable upside, analysts plainly believe State Street is more favorable than First Financial Bankshares.
First Financial Bankshares pays an annual dividend of $ 0.68 per share and has a dividend yield of 1.8%. State Street pays an annual dividend of $ 2.28 per share and has a dividend yield of 3.7%. First Financial Bankshares pays out 43.0% of its earnings in the form of a dividend. State Street pays out 30.9% 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. First Financial Bankshares has increased its dividend for 13 consecutive years and State Street has increased its dividend for 11 consecutive years. State Street is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership:
53.4% of First Financial Bankshares shares are held by institutional investors. Comparatively, 91.5% of State Street shares are held by institutional investors. 4.2% of First Financial Bankshares shares are held by insiders. Comparatively, 0.3% of State Street shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares First Financial Bankshares and State Street’s net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|First Financial Bankshares:||43.17%||13.04%||1.79%|
State Street beats First Financial Bankshares on 10 of the 17 factors compared between the two stocks.
About First Financial Bankshares: (Get Rating)
First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings and money market accounts, and time deposits; commercial and industrial, municipal, agricultural, construction and development, farm, non-owner occupied and owner-occupied commercial real estate, residential, and consumer auto and non-auto loans to businesses, professional individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, internet and mobile banking, payroll cards, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administer retirements and employee benefits accounts, such as 401 (k) profit-sharing plans and IRAs. Further, the company provides asset management and technology services. As of December 31, 2021, it had 78 financial centers across Texas. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.
About State Street: (Get Rating)
State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors. It also engages in the provision of portfolio management and risk analytics, as well as trading and post-trade settlement services with integrated compliance and managed data. In addition, the company offers investment management strategies and products, such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies. Further, it provides services and solutions, including environmental, social, and governance investing; defined benefit and defined contribution; and global fiduciary solutions, as well as exchange-traded fund under the SPDR ETF brand. The company provides its products and services to mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1792 and is headquartered in Boston, Massachusetts.
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