First Horizon (NYSE:FHN) versus American Business Bank (OTCMKTS:AMBZ) Head-To-Head Comparison

First Horizon (NYSE:FHN) and American Business Bank (OTCMKTS:AMBZ) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Insider & Institutional Ownership

80.3% of First Horizon shares are owned by institutional investors. Comparatively, 9.9% of American Business Bank shares are owned by institutional investors. 0.9% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First Horizon and American Business Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Horizon	$5.03 billion	2.39	$775.00 million	$1.65	14.82
American Business Bank	$183.26 million	3.09	$43.28 million	$5.58	11.45

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

Risk and Volatility

First Horizon has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, American Business Bank has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for First Horizon and American Business Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Horizon	0	11	9	1	2.52
American Business Bank	0	0	0	0	0.00

First Horizon presently has a consensus price target of $25.95, suggesting a potential upside of 6.10%. Given First Horizon’s stronger consensus rating and higher probable upside, equities research analysts plainly believe First Horizon is more favorable than American Business Bank.

Dividends

First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. American Business Bank pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. First Horizon pays out 36.4% of its earnings in the form of a dividend. American Business Bank pays out 17.9% 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.

Profitability

This table compares First Horizon and American Business Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Horizon	18.08%	10.93%	1.16%
American Business Bank	26.10%	N/A	N/A

Summary

First Horizon beats American Business Bank on 13 of the 17 factors compared between the two stocks.

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 American Business Bank

American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfers, import and export commercial letters of credit, standby letters of credit, documentary and clean collections, and foreign currency exchange services; and consulting and referral services. It operates regional loan production offices located in North Orange County, Orange County, South Bay, San Fernando Valley, Riverside County, Inland Empire, and Long Beach. American Business Bank was incorporated in 1998 and is headquartered in Los Angeles, California.