Head-To-Head Analysis: Renasant (NASDAQ:RNST) vs. First Interstate BancSystem (NASDAQ:FIBK)

Renasant (NASDAQ:RNSTGet Rating) and First Interstate BancSystem (NASDAQ:FIBKGet Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

79.8% of Renasant shares are owned by institutional investors. Comparatively, 69.4% of First Interstate BancSystem shares are owned by institutional investors. 2.9% of Renasant shares are owned by company insiders. Comparatively, 6.4% of First Interstate BancSystem shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Renasant and First Interstate BancSystem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renasant 23.66% 7.01% 0.93%
First Interstate BancSystem 29.28% 8.40% 0.86%

Dividends

Renasant pays an annual dividend of $0.88 per share and has a dividend yield of 3.0%. First Interstate BancSystem pays an annual dividend of $1.64 per share and has a dividend yield of 5.0%. Renasant pays out 32.7% of its earnings in the form of a dividend. First Interstate BancSystem pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Interstate BancSystem has increased its dividend for 9 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Renasant and First Interstate BancSystem, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renasant 0 2 1 0 2.33
First Interstate BancSystem 0 2 1 0 2.33

Renasant currently has a consensus target price of $39.50, suggesting a potential upside of 32.59%. First Interstate BancSystem has a consensus target price of $45.00, suggesting a potential upside of 38.38%. Given First Interstate BancSystem’s higher possible upside, analysts clearly believe First Interstate BancSystem is more favorable than Renasant.

Valuation & Earnings

This table compares Renasant and First Interstate BancSystem’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renasant $695.67 million 2.39 $175.89 million $2.69 11.07
First Interstate BancSystem $656.00 million 3.08 $192.10 million $1.92 16.94

First Interstate BancSystem has lower revenue, but higher earnings than Renasant. Renasant is trading at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Renasant has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, First Interstate BancSystem has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

First Interstate BancSystem beats Renasant on 9 of the 15 factors compared between the two stocks.

About Renasant (Get Rating)

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estateÂ-1-4 family mortgage; real estateÂ-commercial mortgage; real estateÂ-construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

About First Interstate BancSystem (Get Rating)

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, and other operational services, as well as online and mobile banking services. It serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, energy, governmental services, healthcare, hospitality, housing, mining, professional services, real estate development, retail, technology, tourism, and wholesale trade. As of December 31, 2021, it operated 147 banking offices, including detached drive-up facilities in communities across Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is headquartered in Billings, Montana.

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