S&T Bancorp (NASDAQ:STBA) vs. Fifth Third Bancorp (NASDAQ:FITB) Financial Contrast

Fifth Third Bancorp (NASDAQ:FITB) and S&T Bancorp (NASDAQ:STBA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Risk & Volatility

Fifth Third Bancorp has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Fifth Third Bancorp and S&T Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth Third Bancorp	16.58%	14.58%	1.19%
S&T Bancorp	23.69%	10.25%	1.41%

Analyst Ratings

This is a summary of recent ratings and target prices for Fifth Third Bancorp and S&T Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth Third Bancorp	0	9	10	0	2.53
S&T Bancorp	0	1	0	0	2.00

Fifth Third Bancorp currently has a consensus price target of $44.81, suggesting a potential downside of 2.21%. S&T Bancorp has a consensus price target of $41.00, suggesting a potential downside of 5.29%. Given Fifth Third Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Fifth Third Bancorp is more favorable than S&T Bancorp.

Earnings and Valuation

This table compares Fifth Third Bancorp and S&T Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth Third Bancorp	$8.17 billion	3.76	$2.35 billion	$3.01	15.22
S&T Bancorp	$392.73 million	4.22	$144.78 million	$3.51	12.33

Fifth Third Bancorp has higher revenue and earnings than S&T Bancorp. S&T Bancorp is trading at a lower price-to-earnings ratio than Fifth Third Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

83.8% of Fifth Third Bancorp shares are held by institutional investors. Comparatively, 65.2% of S&T Bancorp shares are held by institutional investors. 0.5% of Fifth Third Bancorp shares are held by company insiders. Comparatively, 1.4% of S&T Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Fifth Third Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. S&T Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 3.1%. Fifth Third Bancorp pays out 49.2% of its earnings in the form of a dividend. S&T Bancorp pays out 38.7% 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. Fifth Third Bancorp has increased its dividend for 14 consecutive years and S&T Bancorp has increased its dividend for 12 consecutive years. Fifth Third Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Fifth Third Bancorp beats S&T Bancorp on 11 of the 17 factors compared between the two stocks.

About Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.

About S&T Bancorp

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that engages in the provision of retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.