BB&T Corporation (BBT) versus Its Competitors Critical Analysis

BB&T Corporation (NYSE: BBT) is one of 251 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare BB&T Corporation to related businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Risk & Volatility

BB&T Corporation has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, BB&T Corporation’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Dividends

BB&T Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. BB&T Corporation pays out 49.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.1% and pay out 37.2% of their earnings in the form of a dividend. BB&T Corporation has raised its dividend for 5 consecutive years.

Earnings and Valuation

This table compares BB&T Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
BB&T Corporation $11.54 billion $2.43 billion 17.41
BB&T Corporation Competitors $6.73 billion $985.25 million 445.01

BB&T Corporation has higher revenue and earnings than its competitors. BB&T Corporation 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.

Analyst Recommendations

This is a summary of current ratings and price targets for BB&T Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BB&T Corporation 1 12 5 0 2.22
BB&T Corporation Competitors 1958 7626 7689 297 2.36

BB&T Corporation currently has a consensus target price of $49.18, indicating a potential upside of 5.03%. As a group, “Banks” companies have a potential downside of 1.29%. Given BB&T Corporation’s higher probable upside, research analysts clearly believe BB&T Corporation is more favorable than its competitors.

Insider & Institutional Ownership

65.6% of BB&T Corporation shares are owned by institutional investors. Comparatively, 53.7% of shares of all “Banks” companies are owned by institutional investors. 0.4% of BB&T Corporation shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by 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.

Profitability

This table compares BB&T Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BB&T Corporation 19.42% 9.64% 1.18%
BB&T Corporation Competitors 18.95% 8.76% 0.94%

Summary

BB&T Corporation beats its competitors on 9 of the 15 factors compared.

BB&T Corporation Company Profile

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients. Its retail services include asset management, automobile lending, bankcard lending, consumer finance, home equity lending, home mortgage lending, insurance, investment brokerage services, payment solutions and sales finance, among others. Its commercial services include asset management, association services, capital market services, commercial deposit services, commercial finance, corporate banking, floor plan lending, insurance, merchant services, real estate lending and payment solutions, among others.

What are top analysts saying about BB&T Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for BB&T Corporation and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit