U.S. Bancorp (NYSE:USB – Get Free Report) and Fulton Financial (NASDAQ:FULT – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
77.6% of U.S. Bancorp shares are held by institutional investors. Comparatively, 72.0% of Fulton Financial shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by insiders. Comparatively, 1.1% of Fulton Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares U.S. Bancorp and Fulton Financial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
U.S. Bancorp | 14.75% | 12.94% | 0.97% |
Fulton Financial | 15.87% | 11.41% | 1.08% |
Dividends
Analyst Ratings
This is a summary of current recommendations and price targets for U.S. Bancorp and Fulton Financial, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
U.S. Bancorp | 0 | 9 | 11 | 0 | 2.55 |
Fulton Financial | 0 | 3 | 2 | 0 | 2.40 |
U.S. Bancorp currently has a consensus target price of $54.21, suggesting a potential upside of 10.65%. Fulton Financial has a consensus target price of $20.33, suggesting a potential downside of 1.10%. Given U.S. Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe U.S. Bancorp is more favorable than Fulton Financial.
Volatility & Risk
U.S. Bancorp has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Fulton Financial has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Valuation & Earnings
This table compares U.S. Bancorp and Fulton Financial”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
U.S. Bancorp | $42.71 billion | 1.79 | $6.30 billion | $3.79 | 12.93 |
Fulton Financial | $1.86 billion | 2.01 | $284.28 million | $1.57 | 13.10 |
U.S. Bancorp has higher revenue and earnings than Fulton Financial. U.S. Bancorp is trading at a lower price-to-earnings ratio than Fulton Financial, indicating that it is currently the more affordable of the two stocks.
Summary
U.S. Bancorp beats Fulton Financial on 11 of the 17 factors compared between the two stocks.
About U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.
About Fulton Financial
Fulton Financial Corporation operates as a financial holding company that provides consumer and commercial banking products and services in Pennsylvania, Delaware, Maryland, New Jersey, and Virginia. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company offers consumer loans products, including home equity loans and lines of credit, automobile loans, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial real estate, commercial and industrial, and construction loans, as well as equipment lease financing loans. In addition, it offers letters of credit, cash management services, and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns trust preferred securities; and sells various life insurance products. It provides its products and services through financial center offices, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania.
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