Head-To-Head Comparison: F.N.B. (NYSE:FNB) and Sturgis Bancorp (OTCMKTS:STBI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	12.18%	N/A	N/A
F.N.B.	21.77%	9.98%	1.28%

Risk & Volatility

Sturgis Bancorp has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Sturgis Bancorp and F.N.B., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturgis Bancorp	0	0	0	0	N/A
F.N.B.	0	0	4	0	3.00

F.N.B. has a consensus price target of $15.00, suggesting a potential upside of 17.14%. Given F.N.B.’s higher possible upside, analysts clearly believe F.N.B. is more favorable than Sturgis Bancorp.

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 4.1%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. Sturgis Bancorp pays out 24.0% of its earnings in the form of a dividend. F.N.B. pays out 36.4% 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. Sturgis Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

79.3% of F.N.B. shares are held by institutional investors. 16.0% of Sturgis Bancorp shares are held by company insiders. Comparatively, 1.2% of F.N.B. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sturgis Bancorp and F.N.B.’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$49.68 million	0.72	$6.02 million	$2.83	5.87
F.N.B.	$2.23 billion	2.07	$485.00 million	$1.32	9.70

F.N.B. has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp 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.

Summary

F.N.B. beats Sturgis Bancorp on 11 of the 15 factors compared between the two stocks.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

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.