Truist Financial (NYSE:TFC) & First Capital (NASDAQ:FCAP) Head to Head Contrast

Truist Financial (NYSE:TFC) and First Capital (NASDAQ:FCAP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

71.3% of Truist Financial shares are owned by institutional investors. Comparatively, 11.7% of First Capital shares are owned by institutional investors. 0.2% of Truist Financial shares are owned by insiders. Comparatively, 4.1% of First Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Truist Financial and First Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truist Financial	$30.44 billion	1.86	$5.31 billion	$4.36	10.61
First Capital	$65.31 million	3.17	$16.37 million	$5.53	11.21

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

Dividends

Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.5%. First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Truist Financial pays out 47.7% of its earnings in the form of a dividend. First Capital pays out 23.1% 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. First Capital has raised its dividend for 2 consecutive years.

Risk & Volatility

Truist Financial has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Truist Financial and First Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truist Financial	2	8	8	0	2.33
First Capital	0	0	2	0	3.00

Truist Financial presently has a consensus price target of $55.44, indicating a potential upside of 19.83%. Given Truist Financial’s higher probable upside, research analysts clearly believe Truist Financial is more favorable than First Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Truist Financial	19.13%	10.06%	1.09%
First Capital	26.79%	13.39%	1.45%

Summary

First Capital beats Truist Financial on 10 of the 17 factors compared between the two stocks.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.