Analyzing AmeriServ Financial (NASDAQ:ASRV) and First Horizon National (NASDAQ:FHN)

AmeriServ Financial (NASDAQ:ASRV) and First Horizon National (NYSE:FHN) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for AmeriServ Financial and First Horizon National, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmeriServ Financial 0 0 0 0 N/A
First Horizon National 0 2 10 0 2.83

First Horizon National has a consensus price target of $12.75, suggesting a potential upside of 29.84%. Given First Horizon National’s higher probable upside, analysts plainly believe First Horizon National is more favorable than AmeriServ Financial.

Valuation & Earnings

This table compares AmeriServ Financial and First Horizon National’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmeriServ Financial $64.54 million 0.71 $6.03 million N/A N/A
First Horizon National $2.28 billion 1.35 $440.91 million $1.66 5.92

First Horizon National has higher revenue and earnings than AmeriServ Financial.

Dividends

AmeriServ Financial pays an annual dividend of $0.10 per share and has a dividend yield of 3.7%. First Horizon National pays an annual dividend of $0.60 per share and has a dividend yield of 6.1%. First Horizon National pays out 36.1% of its earnings in the form of a dividend. AmeriServ Financial has raised its dividend for 2 consecutive years and First Horizon National has raised its dividend for 5 consecutive years. First Horizon National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

AmeriServ Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, First Horizon National has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Profitability

This table compares AmeriServ Financial and First Horizon National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmeriServ Financial 8.11% 5.13% 0.44%
First Horizon National 13.06% 7.45% 0.81%

Insider & Institutional Ownership

40.4% of AmeriServ Financial shares are owned by institutional investors. Comparatively, 99.1% of First Horizon National shares are owned by institutional investors. 9.3% of AmeriServ Financial shares are owned by insiders. Comparatively, 2.0% of First Horizon National shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

First Horizon National beats AmeriServ Financial on 13 of the 15 factors compared between the two stocks.

AmeriServ Financial Company Profile

AmeriServ Financial Inc. operates as the bank holding company for AmeriServ Financial Bank that provides various consumer, mortgage, and commercial financial products. It offers retail banking services, such as demand, savings, and time deposits; checking and money market accounts; secured and unsecured consumer loans, and mortgage loans; and safe deposit boxes, holiday club accounts, money orders, and traveler's checks. The company also provides lending, depository, and related financial services, such as commercial real estate mortgage loans, short and medium-term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services to commercial, industrial, financial, and governmental customers. In addition, the company offers personal trust products and services, including personal portfolio investment management, estate planning and administration, custodial services, and pre-need trusts; institutional trust products and services comprising 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts; financial services consisting of the sale of mutual funds, annuities, and insurance products; and union collective investment funds to invest union pension dollars in construction projects that utilize union labor. Further, it engages in underwriting as reinsurer of credit life and disability insurance. The company operates through a network of 16 banking locations in Allegheny, Cambria, Centre, Somerset, Westmoreland counties, Pennsylvania, and Washington County, Maryland; and operates 17 automated bank teller machines. AmeriServ Financial, Inc. is headquartered in Johnstown, Pennsylvania.

First Horizon National Company Profile

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services. It operates through four segments: Regional Banking, Fixed Income, Corporate, and Non-Strategic. The company offers general banking services for consumers, businesses, financial institutions, and governments. It is also involved in the underwriting of bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; loan sales; derivative sales; and provision of advisory services. In addition, the company offers brokerage services; correspondent banking services; transaction processing services comprising nationwide check clearing and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; and investment and financial advisory services. Further, it engages in mutual fund and retail insurance sales, as well as provides mortgage banking services. As of December 31, 2018, the company operated approximately 300 branches under the First Tennessee Bank and Capital Bank brands. The company was founded in 1864 and is headquartered in Memphis, Tennessee.

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