Head-To-Head Survey: FCB Financial (FCB) & UBS Group (UBS)

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FCB Financial (NYSE:FCB) and UBS Group (NYSE:UBS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Valuation and Earnings

This table compares FCB Financial and UBS Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FCB Financial $409.12 million 4.42 $125.19 million $3.28 11.77
UBS Group $43.95 billion 1.20 $1.07 billion $1.07 12.77

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

Analyst Ratings

This is a summary of current ratings and price targets for FCB Financial and UBS Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FCB Financial 0 4 2 0 2.33
UBS Group 1 0 5 0 2.67

FCB Financial currently has a consensus price target of $56.20, indicating a potential upside of 45.52%. Given FCB Financial’s higher probable upside, analysts clearly believe FCB Financial is more favorable than UBS Group.

Risk & Volatility

FCB Financial has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares FCB Financial and UBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FCB Financial 29.45% 13.29% 1.47%
UBS Group 5.02% 10.19% 0.56%

Dividends

UBS Group pays an annual dividend of $0.69 per share and has a dividend yield of 5.1%. FCB Financial does not pay a dividend. UBS Group pays out 64.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

92.5% of FCB Financial shares are held by institutional investors. Comparatively, 32.0% of UBS Group shares are held by institutional investors. 9.6% of FCB Financial shares are held by company insiders. Comparatively, 1.0% of UBS Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

FCB Financial beats UBS Group on 9 of the 16 factors compared between the two stocks.

About FCB Financial

FCB Financial Holdings, Inc. operates as the bank holding company for Florida Community Bank, N.A. that provides various financial products and services to individuals, small and medium-sized businesses, large businesses, and other local organizations and entities in south and central Florida. The company offers various deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit; checking products; and money market accounts and IRAs. It also offers consumer loans, such as personal and auto loans, recreational loans, and home improvement/second mortgage loans. In addition, the company provides commercial credit products, such as lines of credit to finance working capital and trade activities; loans for owner occupied real estate financing; equipment financing; acquisition financing; construction financing, mini-permanent and permanent financing, acquisition and development lending, land financing, and bridge lending services to commercial real estate clients; and specialty financing services to owners and operators in the areas of aviation and marine lending, as well as participates in club lending structures. Further, it offers syndicated loans; credit cards and purchasing cards; and derivative products, such as interest rate swaps; treasury products; securities brokerage services, investment advice, and investment recommendations; and online and mobile banking, safe deposit boxes, and payment services. As of December 31, 2017, FCB Financial Holdings, Inc. operated through a network of 46 banking centers in Florida. The company was formerly known as Bond Street Holdings, Inc. and changed its name to FCB Financial Holdings, Inc. in June 2014. FCB Financial Holdings, Inc. was founded in 1923 and is headquartered in Weston, Florida.

About UBS Group

UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through five divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management, and Investment Bank. The Wealth Management division offers advisory and financial services to wealthy private clients. This segment provides banking and lending solutions, wealth planning, investment management solutions, and corporate finance advice. The Wealth Management Americas division offers wealth management solutions designed to address the needs of high and ultra high net worth clients. This division operates the United States and Canadian wealth management businesses; and international business booked in the United States. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients in Switzerland. The Asset Management division offers investment management products and services comprising equities, asset allocation and currency investment strategies, hedge funds, fixed income products, real estate strategies, and infrastructure and private equity products; multi-manager hedge fund solutions and advisory services; and customized multi-asset solutions and advisory services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions, as well as risk management services, such as corporate lending and associated hedging for wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.

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