uploads///fhn pbv

How Does First Horizon National Compare to Its Peers?

By

Nov. 20 2020, Updated 2:20 p.m. ET

First Horizon National and its peers

An analysis of First Horizon National and its peers follows:

  • The forward PE (price-to-earnings) ratios of First Horizon National (FHN), BB&T (BBT), SunTrust Banks (STI), Regions Financial (RF), and Zions Bancorp (ZION) are 14.14x, 11.39x, 11.42x, 10.45x, and 13.77x, respectively.

  • The PBV (price-to-book value) ratios of First Horizon, BB&T, SunTrust, Regions Financial, and Zions are 1.51x, 1.18x, 0.91x, 0.75x, and 0.88x, respectively.
  • The EPS (earnings per share) of First Horizon and SunTrust are $0.29 and $1, respectively, in 3Q15.

As a result, First Horizon outperformed its peers based on the forward PE ratio and PBV ratio.

Article continues below advertisement

ETFs that invest in First Horizon 

The PowerShares KBW Regional Banking Portfolio (KBWR) invests 2.0% of its holdings in First Horizon. KBWR tracks an equal-weighted index focused exclusively on US regional banking firms.

The KBE Bank Fund (KBE) invests 1.8% of its holdings in First Horizon. KBE tracks an equal-weighted index of US banking firms.

The SPDR S&P Regional Banking Fund (KRE) invests 1.5% of its holdings in First Horizon. The ETF tracks an equal-weighted index of US regional banking stocks.

Comparing First Horizon and its ETFs

An analysis of First Horizon and its ETFs follows:

  • The YTD (year-to-date) price movements of First Horizon, KBWR, KBE, and KRE are 2.9%, 3.2%, 1.6%, and 3.4%, respectively.
  • The PE ratios of First Horizon, KBWR, KBE, and KRE are 51.11x, 18.85x, 14.01x, and 15.38x, respectively.
  • The PBV ratios of First Horizon, KBWR, KBE, and KRE are 1.51x, 1.39x, 1.21x, and 1.26x, respectively.

According to the above findings, the ETFs outperformed First Horizon based on the price movement. However, First Horizon is way ahead of its ETFs based on the PE ratio and PBV ratio.

Advertisement

More From Market Realist