Financial Review: Axos Financial (NASDAQ:AX) vs. First Guaranty Bancshares (NASDAQ:FGBI)

Axos Financial (NASDAQ:AXGet Rating) and First Guaranty Bancshares (NASDAQ:FGBIGet Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Axos Financial and First Guaranty Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axos Financial 0 0 0 0 N/A
First Guaranty Bancshares 0 0 0 0 N/A

Insider and Institutional Ownership

76.2% of Axos Financial shares are held by institutional investors. Comparatively, 7.3% of First Guaranty Bancshares shares are held by institutional investors. 4.7% of Axos Financial shares are held by company insiders. Comparatively, 42.7% of First Guaranty Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Axos Financial and First Guaranty Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axos Financial $723.12 million 3.11 $215.71 million $3.91 9.64
First Guaranty Bancshares $122.68 million 2.38 $27.30 million $2.60 10.46

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

Risk & Volatility

Axos Financial has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares Axos Financial and First Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axos Financial 32.23% 16.41% 1.61%
First Guaranty Bancshares 23.43% 16.05% 1.06%

Summary

Axos Financial beats First Guaranty Bancshares on 9 of the 11 factors compared between the two stocks.

About Axos Financial (Get Rating)

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

About First Guaranty Bancshares (Get Rating)

First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits to consumers, small businesses, and municipalities. The company also provides loans, such as non-farm, non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, multifamily loans, construction and land development loans, agricultural loans, farmland loans, and consumer and other loans to small to medium-sized businesses and professionals, and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, automated teller machines, and online bill pay; provides additional solutions, such as merchant services, remote deposit capture, and lockbox services to business customers; and invests a portion of its assets in securities issued by the United States Government and its agencies, state and municipal obligations, corporate debt securities, mutual funds, and equity securities, as well as invests in mortgage-backed securities primarily issued or guaranteed by United States Government agencies or enterprises. The company operates through 36 banking facilities primarily located in market services areas of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Lake Charles, Alexandria, Dallas-Fort Worth-Arlington, Waco, Kentucky, and West Virginia. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.

Receive News & Ratings for Axos Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Axos Financial and related companies with MarketBeat.com's FREE daily email newsletter.