Bancolombia (NYSE: CIB) and Franklin Financial Network (NYSE:FSB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Bancolombia pays an annual dividend of $1.26 per share and has a dividend yield of 3.2%. Franklin Financial Network does not pay a dividend. Bancolombia pays out 29.8% of its earnings in the form of a dividend.
Bancolombia has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Franklin Financial Network has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Bancolombia and Franklin Financial Network, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Franklin Financial Network||0||4||1||0||2.20|
Bancolombia currently has a consensus price target of $43.67, indicating a potential upside of 10.10%. Franklin Financial Network has a consensus price target of $40.20, indicating a potential upside of 17.89%. Given Franklin Financial Network’s stronger consensus rating and higher possible upside, analysts plainly believe Franklin Financial Network is more favorable than Bancolombia.
Earnings & Valuation
This table compares Bancolombia and Franklin Financial Network’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bancolombia||$5.96 billion||1.60||$859.59 million||$4.23||9.38|
|Franklin Financial Network||$115.05 million||3.92||$28.05 million||$2.45||13.92|
Bancolombia has higher revenue and earnings than Franklin Financial Network. Bancolombia is trading at a lower price-to-earnings ratio than Franklin Financial Network, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
13.3% of Bancolombia shares are owned by institutional investors. Comparatively, 54.9% of Franklin Financial Network shares are owned by institutional investors. 10.6% of Franklin Financial Network shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Bancolombia and Franklin Financial Network’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Franklin Financial Network||23.70%||11.48%||0.98%|
Franklin Financial Network beats Bancolombia on 10 of the 16 factors compared between the two stocks.
Bancolombia S.A. (Bancolombia) is a financial institution engaged in providing a range of financial products and services to a diversified individual, corporate, and government customer base throughout Colombia, Latin America and the Caribbean region. The Bank operates through 10 segments: Banking Colombia, Banking Panama, Banking El Salvador, Leasing, Trust, Investment Banking, Brokerage, Off Shore and All other. It delivers its products and services through its regional network comprising Colombia’s non-Government owned banking network, El Salvador’s financial conglomerate by gross loans, Guatemala’s bank, Panama’s bank and off-shore banking subsidiaries in Panama, Cayman and Puerto Rico, as well as subsidiaries in Peru. The Bank and its subsidiaries offer Savings And Investment, Ahorro A La Mano, Financing, Mortgage Banking, Factoring, Financial and Operating Leases, Capital Markets, eTrading, Cash Management, Foreign Currency, Bancassurance, Investment Banking and Trust Services.
About Franklin Financial Network
Franklin Financial Network, Inc. is a financial holding company. Through its bank subsidiary, Franklin Synergy Bank (the Bank), a commercial bank, the Company provides a range of banking and related financial services. The Company focuses on the provision of services to small businesses, corporate entities, local governments and individuals. As of December 31, 2016, the Company operated through 12 branches in Williamson and Rutherford counties and a loan production office within the Nashville metropolitan area. The Company’s loan portfolio consists of real estate loans, including construction and land development loans, commercial loans and residential loans; commercial and industrial, and consumer and other loans. The Company’s investment securities portfolio consists of both securities classified as available-for-sale and securities classified as held-to-maturity. The Company’s primary sources of funds include deposits.
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