Head-To-Head Review: First Guaranty Bancshares (NASDAQ:FGBI) & BankUnited (NYSE:BKU)

First Guaranty Bancshares (NASDAQ:FGBI) and BankUnited (NYSE:BKU) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares First Guaranty Bancshares and BankUnited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Guaranty Bancshares $124.46 million 1.80 $20.32 million $2.30 9.08
BankUnited $1.20 billion 3.44 $197.85 million $4.00 11.59

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

Profitability

This table compares First Guaranty Bancshares and BankUnited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Guaranty Bancshares 19.68% 14.05% 0.96%
BankUnited 34.24% 12.21% 1.06%

Analyst Ratings

This is a breakdown of current ratings and target prices for First Guaranty Bancshares and BankUnited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Guaranty Bancshares 0 1 0 0 2.00
BankUnited 0 5 3 0 2.38

First Guaranty Bancshares presently has a consensus price target of $19.50, suggesting a potential downside of 6.65%. BankUnited has a consensus price target of $48.00, suggesting a potential upside of 3.52%. Given BankUnited’s stronger consensus rating and higher possible upside, analysts clearly believe BankUnited is more favorable than First Guaranty Bancshares.

Insider & Institutional Ownership

7.6% of First Guaranty Bancshares shares are owned by institutional investors. Comparatively, 99.8% of BankUnited shares are owned by institutional investors. 42.7% of First Guaranty Bancshares shares are owned by company insiders. Comparatively, 1.6% of BankUnited shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

First Guaranty Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. BankUnited pays an annual dividend of $0.92 per share and has a dividend yield of 2.0%. First Guaranty Bancshares pays out 27.8% of its earnings in the form of a dividend. BankUnited pays out 23.0% 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. BankUnited has increased its dividend for 1 consecutive years.

Volatility and Risk

First Guaranty Bancshares has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, BankUnited has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

BankUnited beats First Guaranty Bancshares on 14 of the 17 factors compared between the two stocks.

First Guaranty Bancshares Company Profile

First Guaranty Bancshares, Inc. engages in the provision of personalized commercial banking services to businesses, professionals, and individuals. Its services include personal checking, money market, loans, courtesy sweep, business checking, cash management, courtesy pay, and digital. The company was founded on July 27, 2007 and is headquartered in Hammond, LA.

BankUnited Company Profile

BankUnited, Inc. is a holding company, which engages in the provision of commercial and consumer banking services through its subsidiary, BankUnited, N.A.. Its services include corporate banking services, commercial real estate, treasury management, business checking accounts, business online banking solutions, and home mortgages. The company was founded on May 21, 2009 and is headquartered in Miami Lakes, FL.

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