Comparing F.N.B. (NYSE:FNB) and Park National (NYSE:PRK)

Park National (NYSE:PRK) and F.N.B. (NYSE:FNB) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Dividends

Park National pays an annual dividend of $4.28 per share and has a dividend yield of 2.6%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 3.3%. Park National pays out 46.0% of its earnings in the form of a dividend. F.N.B. pays out 38.1% 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. F.N.B. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Park National and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	23.46%	12.31%	1.50%
F.N.B.	18.12%	8.30%	1.08%

Volatility & Risk

Park National has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Park National and F.N.B., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	2	0	0	2.00
F.N.B.	0	1	5	0	2.83

Park National presently has a consensus target price of $181.75, suggesting a potential upside of 11.39%. F.N.B. has a consensus target price of $18.50, suggesting a potential upside of 27.37%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts plainly believe F.N.B. is more favorable than Park National.

Insider & Institutional Ownership

62.7% of Park National shares are owned by institutional investors. Comparatively, 79.3% of F.N.B. shares are owned by institutional investors. 2.7% of Park National shares are owned by insiders. Comparatively, 1.0% of F.N.B. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Park National and F.N.B.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$520.61 million	5.06	$151.42 million	$9.31	17.53
F.N.B.	$1.60 billion	3.27	$465.33 million	$1.26	11.53

F.N.B. has higher revenue and earnings than Park National. F.N.B. is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Summary

F.N.B. beats Park National on 9 of the 16 factors compared between the two stocks.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.