Reviewing Fauquier Bankshares (NASDAQ:FBSS) and Associated Banc (NASDAQ:ASB)

Associated Banc (NYSE:ASB) and Fauquier Bankshares (NASDAQ:FBSS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Associated Banc and Fauquier Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Associated Banc 21.73% 9.71% 1.05%
Fauquier Bankshares 19.68% 10.82% 0.95%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Associated Banc and Fauquier Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Associated Banc 2 6 1 0 1.89
Fauquier Bankshares 0 0 0 0 N/A

Associated Banc presently has a consensus price target of $22.71, suggesting a potential upside of 5.06%. Given Associated Banc’s higher possible upside, research analysts clearly believe Associated Banc is more favorable than Fauquier Bankshares.

Institutional and Insider Ownership

73.3% of Associated Banc shares are held by institutional investors. Comparatively, 24.3% of Fauquier Bankshares shares are held by institutional investors. 2.7% of Associated Banc shares are held by insiders. Comparatively, 4.4% of Fauquier Bankshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Associated Banc has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Fauquier Bankshares has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares Associated Banc and Fauquier Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Associated Banc $1.51 billion 2.28 $333.56 million $2.03 10.65
Fauquier Bankshares $32.77 million 2.38 $6.14 million N/A N/A

Associated Banc has higher revenue and earnings than Fauquier Bankshares.

Dividends

Associated Banc pays an annual dividend of $0.72 per share and has a dividend yield of 3.3%. Fauquier Bankshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Associated Banc pays out 35.5% of its earnings in the form of a dividend.

Summary

Associated Banc beats Fauquier Bankshares on 9 of the 14 factors compared between the two stocks.

Associated Banc Company Profile

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications. This segment also provides specialized financial services comprising interest rate risk management, foreign exchange solutions, and commodity hedging. The company's Community, Consumer, and Business segment offers checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services. Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services. As of April 30, 2019, the company operated approximately 230 banking locations serving approximately 110 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

Fauquier Bankshares Company Profile

Fauquier Bankshares, Inc. operates as the bank holding company for The Fauquier Bank that provides retail banking services to individuals and businesses. The company accepts various deposits, including interest and noninterest-bearing checking, money market, and savings accounts; and time deposits. Its loan portfolio includes commercial and industrial loans, commercial real estate loans, construction and land loans, consumer and student loans, residential real estate loans, and home equity lines of credit. The company also offers safe deposit, ATM, stop payment, wire transfer, and Internet and mobile banking services, as well as debit and credit cards; and personalized services, such as investment management, financial planning, trust, estate settlement, retirement, insurance, and brokerage services. Fauquier Bankshares, Inc. provides its products and services through 11 banking offices in Fauquier and Prince William counties, Virginia. The company was founded in 1902 and is based in Warrenton, Virginia.

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