Reviewing Beacon Financial (BBT) and Its Peers

Beacon Financial (NYSE:BBT) is one of 926 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Beacon Financial to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Beacon Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beacon Financial	8.96%	9.15%	1.01%
Beacon Financial Competitors	14.94%	9.45%	0.92%

Institutional & Insider Ownership

83.1% of Beacon Financial shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Banks” companies are owned by institutional investors. 1.1% of Beacon Financial shares are owned by insiders. Comparatively, 9.9% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Beacon Financial and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	4	3	0	2.43
Beacon Financial Competitors	7395	29805	27226	1371	2.34

Beacon Financial currently has a consensus price target of $32.50, suggesting a potential upside of 15.95%. As a group, “Banks” companies have a potential upside of 12.86%. Given Beacon Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Beacon Financial is more favorable than its rivals.

Risk and Volatility

Beacon Financial has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Beacon Financial’s rivals have a beta of 0.59, meaning that their average stock price is 41% less volatile than the S&P 500.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.6%. Beacon Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 8.7% and pay out 29.0% of their earnings in the form of a dividend. Beacon Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Beacon Financial and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beacon Financial	$882.68 million	$90.27 million	21.23
Beacon Financial Competitors	$83.66 billion	$2.39 billion	20.38

Beacon Financial’s rivals have higher revenue and earnings than Beacon Financial. Beacon Financial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Beacon Financial rivals beat Beacon Financial on 9 of the 15 factors compared.

About Beacon Financial

Truist Financial Corp. operates as a financial holding company, which engages in the provision of banking services to individuals, businesses and municipalities. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health Truist Financial Corp. operates as a financial holding company. It engages in the provision of banking services to individuals, businesses and municipalities. The company operates through the following segments: Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC. insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC.