Head-To-Head Comparison: FB Financial (FBK) versus TriCo Bancshares (TCBK)

FB Financial (NYSE:FBK) and TriCo Bancshares (NASDAQ:TCBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Dividends

FB Financial pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. TriCo Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. FB Financial pays out 5.6% of its earnings in the form of a dividend. TriCo Bancshares pays out 32.7% 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. TriCo Bancshares has raised its dividend for 4 consecutive years. TriCo Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings for FB Financial and TriCo Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FB Financial 0 2 2 0 2.50
TriCo Bancshares 0 1 4 0 2.80

FB Financial presently has a consensus price target of $43.50, suggesting a potential upside of 14.47%. TriCo Bancshares has a consensus price target of $43.50, suggesting a potential upside of 15.14%. Given TriCo Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe TriCo Bancshares is more favorable than FB Financial.

Profitability

This table compares FB Financial and TriCo Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FB Financial 20.27% 13.36% 1.70%
TriCo Bancshares 18.39% 10.38% 1.11%

Earnings and Valuation

This table compares FB Financial and TriCo Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FB Financial $311.19 million 3.75 $52.39 million $2.14 17.76
TriCo Bancshares $231.42 million 4.96 $40.55 million $2.08 18.16

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

Risk & Volatility

FB Financial has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of FB Financial shares are held by institutional investors. Comparatively, 53.7% of TriCo Bancshares shares are held by institutional investors. 57.3% of FB Financial shares are held by company insiders. Comparatively, 14.2% of TriCo Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

FB Financial beats TriCo Bancshares on 9 of the 17 factors compared between the two stocks.

About FB Financial

FB Financial Corporation operates as a holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in two segments, Banking and Mortgage. It provides demand, negotiable order of withdrawal, money market, certificates of deposit, and municipal and savings accounts, as well as time deposits. The company also offers commercial lending products that include working capital lines of credit, equipment loans, owner-occupied and non-owner-occupied real estate construction loans, real estate term loans, and cash flow loans to small and medium sized businesses; and consumer lending products comprising first and second residential mortgage loans, and home equity lines of credit, as well as consumer installment loans to purchase cars, boats, and other recreational vehicles. In addition, it provides residential mortgage banking services through its bank branch network and mortgage banking offices located in the southeastern United States; and an Internet delivery channel, as well as third-party mortgage services to smaller community banks and mortgage companies. Further, the company offers investment services, including equities, mutual funds, bonds, tax-exempt municipals, and annuities; and money management consultation and life insurance products, as well as retirement plan advisory services to business clients. As of January 22, 2018, it operated 58 full-service bank branches across Tennessee, North Alabama, and North Georgia. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in March 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to retail customers and small to medium-sized businesses. It accepts demand, savings, and money market accounts, as well as time deposits; and provides residential and commercial real estate mortgage, consumer, commercial, agricultural, and real estate construction loans. The company also offers installment note collection services; issues cashier's checks; sells travelers checks; and provides safe deposit boxes and other customary banking services. In addition, it provides independent financial and broker-dealer services. The company operates 57 traditional branches, 9 in-store branches, and 2 loan production offices in northern and central California. TriCo Bancshares was founded in 1974 and is headquartered in Chico, California.

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