Head to Head Contrast: Regions Financial (NYSE:RF) versus First Bank (NASDAQ:FRBA)

Regions Financial (NYSE:RF) and First Bank (NASDAQ:FRBA) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Regions Financial and First Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regions Financial	$9.61 billion	2.67	$2.16 billion	$2.45	12.30
First Bank	$149.77 million	3.00	$43.66 million	$1.69	10.61

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

Volatility & Risk

Regions Financial has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, First Bank has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Regions Financial and First Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regions Financial	4	10	6	0	2.10
First Bank	0	2	3	0	2.60

Regions Financial presently has a consensus price target of $32.29, indicating a potential upside of 7.13%. First Bank has a consensus price target of $19.67, indicating a potential upside of 9.69%. Given First Bank’s stronger consensus rating and higher probable upside, analysts plainly believe First Bank is more favorable than Regions Financial.

Profitability

This table compares Regions Financial and First Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regions Financial	23.33%	12.88%	1.42%
First Bank	17.45%	9.57%	1.06%

Insider and Institutional Ownership

79.4% of Regions Financial shares are owned by institutional investors. Comparatively, 64.9% of First Bank shares are owned by institutional investors. 0.3% of Regions Financial shares are owned by company insiders. Comparatively, 13.1% of First Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Regions Financial pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Regions Financial pays out 49.0% of its earnings in the form of a dividend. First Bank pays out 21.3% 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. Regions Financial has raised its dividend for 12 consecutive years. Regions Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Regions Financial beats First Bank on 12 of the 17 factors compared between the two stocks.

About Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market, and commercial real estate developers and investors. The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards, and other consumer loans, as well as deposits. The Wealth Management segment offers credit related products, and retirement and savings solutions; and trust and investment management, asset management, and estate planning services to individuals, businesses, governmental institutions, and non-profit entities. It also provides investment and insurance products; low-income housing tax credit corporate fund syndication services; and other specialty financing services. The company was founded in 1971 and is headquartered in Birmingham, Alabama.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.