First Horizon (NYSE:FHN) versus International Bancshares (NASDAQ:IBOC) Head-To-Head Survey

First Horizon (NYSE:FHN) and International Bancshares (NASDAQ:IBOC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Dividends

First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.1%. First Horizon pays out 38.7% of its earnings in the form of a dividend. International Bancshares pays out 21.1% 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. International Bancshares has raised its dividend for 16 consecutive years.

Volatility & Risk

First Horizon has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares First Horizon and International Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Horizon	17.10%	10.55%	1.13%
International Bancshares	39.51%	14.37%	2.56%

Earnings and Valuation

This table compares First Horizon and International Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Horizon	$5.03 billion	2.21	$775.00 million	$1.55	14.10
International Bancshares	$1.04 billion	4.07	$409.17 million	$6.62	10.31

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

Institutional & Insider Ownership

80.3% of First Horizon shares are held by institutional investors. Comparatively, 65.9% of International Bancshares shares are held by institutional investors. 0.9% of First Horizon shares are held by insiders. Comparatively, 13.4% of International Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Horizon and International Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Horizon	0	6	10	1	2.71
International Bancshares	0	0	0	0	0.00

First Horizon currently has a consensus price target of $23.2813, indicating a potential upside of 6.55%. Given First Horizon’s stronger consensus rating and higher possible upside, analysts plainly believe First Horizon is more favorable than International Bancshares.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.