First Horizon (NYSE:FHN) vs. Mission Valley Bancorp (OTCMKTS:MVLY) Financial Survey

Mission Valley Bancorp (OTCMKTS:MVLY) and First Horizon (NYSE:FHN) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Mission Valley Bancorp and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Valley Bancorp	N/A	N/A	N/A
First Horizon	18.08%	11.03%	1.17%

Earnings and Valuation

This table compares Mission Valley Bancorp and First Horizon”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Valley Bancorp	N/A	N/A	$6.20 million	$1.80	10.03
First Horizon	$3.16 billion	3.33	$775.00 million	$1.65	12.96

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Mission Valley Bancorp and First Horizon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Valley Bancorp	0	0	0	0	0.00
First Horizon	0	10	9	1	2.55

First Horizon has a consensus price target of $24.41, indicating a potential upside of 14.15%. Given First Horizon’s stronger consensus rating and higher possible upside, analysts plainly believe First Horizon is more favorable than Mission Valley Bancorp.

Insider & Institutional Ownership

5.7% of Mission Valley Bancorp shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 0.9% of First Horizon 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.

Risk & Volatility

Mission Valley Bancorp has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Dividends

Mission Valley Bancorp pays an annual dividend of $0.15 per share and has a dividend yield of 0.8%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Mission Valley Bancorp pays out 8.3% of its earnings in the form of a dividend. First Horizon pays out 36.4% 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.

Summary

First Horizon beats Mission Valley Bancorp on 14 of the 16 factors compared between the two stocks.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.