S&T Bancorp (NASDAQ:STBA – Get Free Report) and Fannie Mae (OTCMKTS:FNMA – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Profitability
This table compares S&T Bancorp and Fannie Mae’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| S&T Bancorp | 24.51% | 9.74% | 1.42% |
| Fannie Mae | 4.59% | -76.66% | 0.51% |
Analyst Ratings
This is a breakdown of recent ratings for S&T Bancorp and Fannie Mae, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| S&T Bancorp | 0 | 6 | 2 | 0 | 2.25 |
| Fannie Mae | 1 | 4 | 0 | 1 | 2.17 |
Insider & Institutional Ownership
65.2% of S&T Bancorp shares are owned by institutional investors. Comparatively, 0.0% of Fannie Mae shares are owned by institutional investors. 1.2% of S&T Bancorp shares are owned by company insiders. Comparatively, 1.0% of Fannie Mae shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares S&T Bancorp and Fannie Mae”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| S&T Bancorp | $568.51 million | 3.08 | $134.23 million | $3.76 | 13.20 |
| Fannie Mae | $159.17 billion | 0.03 | $14.36 billion | $0.04 | 109.25 |
Fannie Mae has higher revenue and earnings than S&T Bancorp. S&T Bancorp is trading at a lower price-to-earnings ratio than Fannie Mae, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
S&T Bancorp has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Fannie Mae has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
Summary
S&T Bancorp beats Fannie Mae on 9 of the 15 factors compared between the two stocks.
About S&T Bancorp
S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.
About Fannie Mae
Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.
Receive News & Ratings for S&T Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for S&T Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
