Head to Head Review: First Interstate BancSystem (FIBK) vs. The Competition

First Interstate BancSystem (NASDAQ:FIBK) is one of 919 public companies in the “Banks” industry, but how does it compare to its competitors? We will compare First Interstate BancSystem to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Dividends

First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.0%. First Interstate BancSystem pays out 58.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. First Interstate BancSystem lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares First Interstate BancSystem and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Interstate BancSystem	$1.41 billion	$302.10 million	11.82
First Interstate BancSystem Competitors	$9.95 billion	$2.42 billion	21.03

First Interstate BancSystem’s competitors have higher revenue and earnings than First Interstate BancSystem. First Interstate BancSystem is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares First Interstate BancSystem and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	23.30%	9.49%	1.20%
First Interstate BancSystem Competitors	15.62%	9.43%	0.93%

Volatility and Risk

First Interstate BancSystem has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, First Interstate BancSystem’s competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 8.0% of First Interstate BancSystem shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for First Interstate BancSystem and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	3	4	2	0	1.89
First Interstate BancSystem Competitors	7497	30259	27869	1492	2.35

First Interstate BancSystem presently has a consensus price target of $37.43, suggesting a potential downside of 1.32%. As a group, “Banks” companies have a potential upside of 14.45%. Given First Interstate BancSystem’s competitors stronger consensus rating and higher possible upside, analysts plainly believe First Interstate BancSystem has less favorable growth aspects than its competitors.

Summary

First Interstate BancSystem competitors beat First Interstate BancSystem on 10 of the 15 factors compared.

First Interstate BancSystem Company Profile

First Interstate BancSystem, Inc. is a financial holding company whose principal subsidiary is First Interstate Bank. The bank provides personal, business and agricultural banking services, including deposit accounts, loans, mortgage lending and treasury management. Its other offerings include wealth management, trust and investment services, and insurance. The company serves individuals, businesses and communities across a multistate footprint in the western and north-central United States. Established in Montana in 1968, First Interstate BancSystem has grown through the development of its banking operations and acquisitions.