Fidelity D & D Bancorp (NASDAQ:FDBC) & First Horizon (NYSE:FHN) Financial Contrast

Fidelity D & D Bancorp (NASDAQ:FDBC) and First Horizon (NYSE:FHN) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

20.0% of Fidelity D & D Bancorp shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 21.0% of Fidelity D & D Bancorp 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Fidelity D & D Bancorp and First Horizon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity D & D Bancorp	0	0	0	0	N/A
First Horizon	0	5	8	0	2.62

First Horizon has a consensus price target of $17.77, indicating a potential upside of 1.80%. Given First Horizon’s higher probable upside, analysts clearly believe First Horizon is more favorable than Fidelity D & D Bancorp.

Dividends

Fidelity D & D Bancorp pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. Fidelity D & D Bancorp pays out 53.7% of its earnings in the form of a dividend. First Horizon pays out 42.0% 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. Fidelity D & D Bancorp has increased its dividend for 9 consecutive years. First Horizon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Fidelity D & D Bancorp has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fidelity D & D Bancorp and First Horizon”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity D & D Bancorp	$70.18 million	4.25	$18.21 million	$2.83	18.37
First Horizon	$3.12 billion	3.06	$897.00 million	$1.43	12.21

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

Profitability

This table compares Fidelity D & D Bancorp and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity D & D Bancorp	14.14%	11.27%	0.84%
First Horizon	14.03%	8.84%	0.92%

Summary

First Horizon beats Fidelity D & D Bancorp on 9 of the 16 factors compared between the two stocks.

About Fidelity D & D Bancorp

Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, club, interest-bearing and non-interest-bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. It also offers commercial and industrial, commercial real estate, consumer, and residential mortgage loans. In addition, the company provides alternative financial and insurance products with asset management services. The company was founded in 1902 and is headquartered in Dunmore, Pennsylvania.

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.