First Bancshares (NASDAQ:FBMS) versus Valley National Bancorp (NASDAQ:VLY) Head-To-Head Contrast

First Bancshares (NASDAQ:FBMSGet Free Report) and Valley National Bancorp (NASDAQ:VLYGet Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Valuation & Earnings

This table compares First Bancshares and Valley National Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bancshares $387.64 million 2.01 $75.46 million $2.52 9.89
Valley National Bancorp $3.36 billion 1.09 $498.51 million $0.85 8.48

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

Risk & Volatility

First Bancshares has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Valley National Bancorp has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for First Bancshares and Valley National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bancshares 0 2 2 0 2.50
Valley National Bancorp 2 4 3 0 2.11

First Bancshares presently has a consensus target price of $31.00, indicating a potential upside of 24.35%. Valley National Bancorp has a consensus target price of $9.33, indicating a potential upside of 29.45%. Given Valley National Bancorp’s higher probable upside, analysts plainly believe Valley National Bancorp is more favorable than First Bancshares.

Profitability

This table compares First Bancshares and Valley National Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Bancshares 20.00% 9.73% 1.14%
Valley National Bancorp 12.88% 7.74% 0.82%

Dividends

First Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 6.1%. First Bancshares pays out 39.7% of its earnings in the form of a dividend. Valley National Bancorp pays out 51.8% 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. First Bancshares has increased its dividend for 7 consecutive years.

Institutional and Insider Ownership

70.0% of First Bancshares shares are held by institutional investors. Comparatively, 61.0% of Valley National Bancorp shares are held by institutional investors. 3.5% of First Bancshares shares are held by company insiders. Comparatively, 1.9% of Valley National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

First Bancshares beats Valley National Bancorp on 11 of the 17 factors compared between the two stocks.

About First Bancshares

(Get Free Report)

The First Bancshares, Inc. operates as the bank holding company for The First Bank that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes, construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers online internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant services, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company operates full-service banking and financial service offices, motor bank facility, and loan production offices in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

About Valley National Bancorp

(Get Free Report)

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, private banking, retail, insurance, and wealth management financial services products. It operates through Consumer Banking, Commercial Banking, and Treasury and Corporate other segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; automobile financing; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, and foreign wire transfers services. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts investment strategies designed for various investment profiles and objectives. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; brokerage services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; receivable, payment, and security solution, merchant, payroll processing, and liquidity services; credit cards; and drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. Valley National Bancorp was founded in 1927 and is headquartered in Morristown, New Jersey.

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