Comparing Bank First (NASDAQ:BFC) and First Horizon (NYSE:FHN)

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

Risk and Volatility

Bank First has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Dividends

Bank First pays an annual dividend of $1.80 per share and has a dividend yield of 1.8%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Bank First pays out 22.1% of its earnings in the form of a dividend. First Horizon pays out 43.5% 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 Bank First and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank First	32.02%	10.10%	1.49%
First Horizon	15.43%	9.51%	1.01%

Valuation and Earnings

This table compares Bank First and First Horizon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank First	$141.58 million	7.18	$74.51 million	$8.14	12.48
First Horizon	$3.17 billion	3.33	$897.00 million	$1.38	14.45

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

Analyst Recommendations

This is a summary of current ratings for Bank First and First Horizon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank First	0	2	0	0	2.00
First Horizon	0	6	7	0	2.54

Bank First currently has a consensus target price of $104.00, suggesting a potential upside of 2.41%. First Horizon has a consensus target price of $21.00, suggesting a potential upside of 5.32%. Given First Horizon’s stronger consensus rating and higher probable upside, analysts clearly believe First Horizon is more favorable than Bank First.

Institutional & Insider Ownership

30.0% of Bank First shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 4.1% of Bank First shares are owned by company insiders. Comparatively, 0.9% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

First Horizon beats Bank First on 9 of the 16 factors compared between the two stocks.

About Bank First

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

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.