Fulton Financial (NASDAQ:FULT) and Shore Bancshares (NASDAQ:SHBI) Financial Comparison
Fulton Financial (NASDAQ:FULT – Get a rating) and Shore Bancshares (NASDAQ: SHBI – Get a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on earnings strength, institutional ownership, profitability, valuation, risk, dividends, and analyst recommendations.
Institutional and Insider Ownership
64.1% of Fulton Financial shares are held by institutional investors. By comparison, 56.2% of Shore Bancshares shares are held by institutional investors. 1.0% of Fulton Financial shares are held by insiders of the company. By comparison, 11.1% of Shore Bancshares shares are held by company insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company will outperform the market over the long term.
This table compares the net margins, return on equity and return on assets of Fulton Financial and Shore Bancshares.
|Net margins||Return on equity||return on assets|
Fulton Financial pays an annual dividend of $0.60 per share and has a dividend yield of 4.0%. Shore Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. Fulton Financial pays 38.0% of its earnings as a dividend. Shore Bancshares pays 41.0% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Fulton Financial has increased its dividend for 2 consecutive years. Fulton Financial is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Fulton Financial and Shore Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Fulton Financial||$997.16 million||2.44||$275.50 million||$1.58||9.61|
|Shore Bancshares||$83.67 million||4.58||$15.37 million||$1.17||16.52|
Fulton Financial has higher revenues and profits than Shore Bancshares. Fulton Financial trades at a lower price-to-earnings ratio than Shore Bancshares, indicating that it is currently the more affordable of the two stocks.
This is a summary of the current recommendations for Fulton Financial and Shore Bancshares, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Fulton Financial currently has a consensus price target of $18.56, indicating a potential upside of 22.24%. Shore Bancshares has a consensus price target of $22.00, indicating a potential upside of 13.81%. Given Fulton Financial’s likely higher upside, equity research analysts clearly believe Fulton Financial is more favorable than Shore Bancshares.
Volatility and risk
Fulton Financial has a beta of 0.74, suggesting its stock price is 26% less volatile than the S&P 500. By comparison, Shore Bancshares has a beta of 0.87, suggesting its stock price is 13% less volatile than the S&P 500.
Fulton Financial beats Shore Bancshares on 11 of the 16 factors compared between the two stocks.
Fulton Financial Company Profile (Get a rating)
Fulton Financial Corporation operates as a financial holding company that provides personal and business banking products and services. It accepts various checking accounts and savings deposit products, certificates of deposit and individual retirement accounts. The Company also offers secured consumer loans, including home equity loans and lines of credit, auto loans, personal lines of credit and current account overdraft protection; giant construction and residential mortgages; and commercial lending products including commercial, commercial and industrial real estate loans and construction loans, as well as equipment lease financing loans. In addition, it provides letters of credit, cash management services and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance and investment advisory services. In addition, the company holds passive investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through traditional financial center banking, as well as through a network of ATMs, telephone banking, mobile banking and online banking. The company operated branches in Pennsylvania, Maryland, Delaware, New Jersey and Virginia. Fulton Financial Corporation was incorporated in 1882 and is headquartered in Lancaster, Pennsylvania.
Shore Bancshares Company Profile (Get a rating)
Shore Bancshares, Inc. operates as a bank holding company for Shore United Bank which provides various commercial and consumer banking products and services to individuals, businesses and other organizations. It offers checking, savings, overnight investment, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The Company also offers commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, property acquisition and development loans. , construction loans and letters of credit; loans for the construction of residential real estate; residential mortgage loans; and consumer loans, including home equity, auto, installments, home improvement and personal lines of credit, as well as other consumer finance products. In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management and financial planning services. In addition, the Company provides merchant credit card clearing, as well as telephone, mobile and Internet banking; safes; debit and credit cards; payroll direct deposit; and automated teller machine (ATM) services. It operates 29 full-service branches, 30 ATMs and 5 loan origination offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland. ; Kent County, Delaware; and Accomack County, Virginia. The company was founded in 1876 and is based in Easton, Maryland.
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