Fulton Financial (NASDAQ:FULT) & Shore Bancshares (NASDAQ:SHBI) Financial Comparison

Fulton Financial (NASDAQ:FULTGet Rating) and Shore Bancshares (NASDAQ:SHBIGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Institutional and Insider Ownership

64.1% of Fulton Financial shares are held by institutional investors. Comparatively, 56.2% of Shore Bancshares shares are held by institutional investors. 1.0% of Fulton Financial shares are held by company insiders. Comparatively, 11.1% of Shore Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Fulton Financial and Shore Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fulton Financial 28.22% 10.57% 1.03%
Shore Bancshares 17.67% 7.19% 0.69%

Dividends

Fulton Financial pays an annual dividend of $0.60 per share and has a dividend yield of 4.0%. Shore Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. Fulton Financial pays out 38.0% of its earnings in the form of a dividend. Shore Bancshares pays out 41.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fulton Financial has raised its dividend for 2 consecutive years. Fulton Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Fulton Financial and Shore Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fulton Financial $997.16 million 2.44 $275.50 million $1.58 9.61
Shore Bancshares $83.67 million 4.58 $15.37 million $1.17 16.52

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

Analyst Recommendations

This is a summary of current recommendations for Fulton Financial and Shore Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fulton Financial 0 1 1 0 2.50
Shore Bancshares 0 0 1 0 3.00

Fulton Financial presently has a consensus price target of $18.56, indicating a potential upside of 22.24%. Shore Bancshares has a consensus price target of $22.00, indicating a potential upside of 13.81%. Given Fulton Financial’s higher probable upside, equities research analysts clearly believe Fulton Financial is more favorable than Shore Bancshares.

Volatility and Risk

Fulton Financial has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Summary

Fulton Financial beats Shore Bancshares on 11 of the 16 factors compared between the two stocks.

Fulton Financial Company Profile (Get Rating)

Fulton Financial Corporation operates as a financial holding company that provides consumer and commercial banking products and services. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company also offers secured consumer loans, 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 provides 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 passive investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through traditional financial center banking, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. The company operated branches in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia. Fulton Financial Corporation was incorporated in 1882 and is headquartered in Lancaster, Pennsylvania.

Shore Bancshares Company Profile (Get Rating)

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. Further, the company provides merchant credit card clearing, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; direct deposit of payroll; and automatic teller machine (ATM) services. It operates 29 full service branches, 30 ATMs, and 5 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. The company was founded in 1876 and is headquartered in Easton, Maryland.

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