Reviewing Beacon Financial (BBT) and Its Rivals

Beacon Financial (NYSE:BBT) is one of 923 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Beacon Financial to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.7%. 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 9.4% and pay out 29.0% of their earnings in the form of a dividend. Beacon Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Beacon Financial and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beacon Financial	$882.68 million	$90.27 million	20.69
Beacon Financial Competitors	$9.87 billion	$2.40 billion	20.26

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Beacon Financial and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	5	2	0	2.29
Beacon Financial Competitors	7409	29856	27291	1380	2.34

Beacon Financial currently has a consensus price target of $32.50, indicating a potential upside of 19.01%. As a group, “Banks” companies have a potential upside of 17.44%. Given Beacon Financial’s higher possible upside, analysts clearly believe Beacon Financial is more favorable than its competitors.

Volatility and Risk

Beacon Financial has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Beacon Financial’s competitors have a beta of 0.60, indicating that their average stock price is 40% less volatile than the S&P 500.

Profitability

This table compares Beacon Financial and its competitors’ 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	14.81%	9.27%	0.91%

Insider and Institutional Ownership

83.1% of Beacon Financial shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 1.1% of Beacon Financial shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Beacon Financial competitors beat Beacon Financial on 11 of the 15 factors compared.

Beacon Financial Company Profile

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.