Analyzing Flagstar Bank, National Association (NYSE:FLG) & FB Financial (NYSE:FBK)

Flagstar Bank, National Association (NYSE:FLG) and FB Financial (NYSE:FBK) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Flagstar Bank, National Association and FB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	1	5	7	0	2.46
FB Financial	0	0	5	2	3.29

Flagstar Bank, National Association presently has a consensus target price of $15.83, indicating a potential upside of 3.72%. FB Financial has a consensus target price of $64.00, indicating a potential upside of 14.62%. Given FB Financial’s stronger consensus rating and higher possible upside, analysts plainly believe FB Financial is more favorable than Flagstar Bank, National Association.

Earnings and Valuation

This table compares Flagstar Bank, National Association and FB Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flagstar Bank, National Association	$4.81 billion	1.32	-$177.00 million	($0.22)	-69.39
FB Financial	$877.84 million	3.28	$122.62 million	$2.66	20.99

FB Financial has lower revenue, but higher earnings than Flagstar Bank, National Association. Flagstar Bank, National Association is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Flagstar Bank, National Association has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, FB Financial has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Flagstar Bank, National Association and FB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	-1.22%	-0.11%	-0.01%
FB Financial	14.26%	11.64%	1.40%

Insider and Institutional Ownership

67.9% of Flagstar Bank, National Association shares are held by institutional investors. Comparatively, 65.4% of FB Financial shares are held by institutional investors. 21.4% of Flagstar Bank, National Association shares are held by insiders. Comparatively, 2.0% of FB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Flagstar Bank, National Association pays out -18.2% of its earnings in the form of a dividend. FB Financial pays out 31.6% 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. FB Financial has raised its dividend for 8 consecutive years. FB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

FB Financial beats Flagstar Bank, National Association on 12 of the 18 factors compared between the two stocks.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

About FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.