Reviewing F.N.B. (NYSE:FNB) and Carter Bankshares (NASDAQ:CARE)

Carter Bankshares (NASDAQ:CARE) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 79.3% of F.N.B. shares are owned by institutional investors. 1.9% of Carter Bankshares shares are owned by company insiders. Comparatively, 1.0% of F.N.B. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Carter Bankshares and F.N.B., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	0	2	0	3.00
F.N.B.	0	1	5	0	2.83

Carter Bankshares presently has a consensus target price of $21.50, suggesting a potential upside of 31.74%. F.N.B. has a consensus target price of $18.50, suggesting a potential upside of 38.01%. Given F.N.B.’s higher possible upside, analysts clearly believe F.N.B. is more favorable than Carter Bankshares.

Risk & Volatility

Carter Bankshares has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Carter Bankshares and F.N.B.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter Bankshares	$132.40 million	2.85	$24.52 million	$1.06	15.40
F.N.B.	$1.60 billion	3.02	$465.33 million	$1.26	10.64

F.N.B. has higher revenue and earnings than Carter Bankshares. F.N.B. is trading at a lower price-to-earnings ratio than Carter Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	10.09%	6.50%	0.53%
F.N.B.	18.12%	8.30%	1.08%

Summary

F.N.B. beats Carter Bankshares on 11 of the 14 factors compared between the two stocks.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

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.