Financial Review: Carter Bankshares (NASDAQ:CARE) & F.N.B. (NYSE:FNB)

F.N.B. (NYSE:FNB) and Carter Bankshares (NASDAQ:CARE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares F.N.B. and Carter Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F.N.B.	18.12%	8.30%	1.08%
Carter Bankshares	10.09%	6.50%	0.53%

Volatility & Risk

F.N.B. has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Carter Bankshares has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

79.3% of F.N.B. shares are owned by institutional investors. Comparatively, 41.5% of Carter Bankshares shares are owned by institutional investors. 1.0% of F.N.B. shares are owned by insiders. Comparatively, 1.9% of Carter Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares F.N.B. and Carter Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$1.60 billion	3.09	$465.33 million	$1.26	10.87
Carter Bankshares	$132.40 million	2.91	$24.52 million	$1.06	15.73

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for F.N.B. and Carter Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	1	5	0	2.83
Carter Bankshares	0	0	2	0	3.00

F.N.B. presently has a consensus target price of $18.50, suggesting a potential upside of 35.09%. Carter Bankshares has a consensus target price of $21.50, suggesting a potential upside of 28.94%. Given F.N.B.’s higher probable upside, research analysts clearly believe F.N.B. is more favorable than Carter Bankshares.

Summary

F.N.B. beats Carter Bankshares on 11 of the 14 factors compared between the two stocks.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.