Beacon Financial (BBT) & The Competition Critical Comparison

Beacon Financial (NYSE:BBT) is one of 925 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Beacon Financial to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Profitability

This table compares Beacon Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beacon Financial	8.96%	9.15%	1.01%
Beacon Financial Competitors	14.93%	9.46%	0.92%

Institutional & Insider Ownership

83.1% of Beacon Financial shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Banks” companies are owned by institutional investors. 1.1% of Beacon Financial shares are owned by insiders. Comparatively, 9.9% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Beacon Financial and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Beacon Financial	$800.81 million	$90.27 million	24.17
Beacon Financial Competitors	$93.11 billion	$2.39 billion	22.60

Beacon Financial’s rivals have higher revenue and earnings than Beacon Financial. Beacon Financial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Beacon Financial has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Beacon Financial’s rivals have a beta of 0.59, indicating that their average share price is 41% less volatile than the S&P 500.

Dividends

Beacon Financial pays an annual dividend of $1.29 per share and has a dividend yield of 4.0%. Beacon Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.6% and pay out 32.4% of their earnings in the form of a dividend. Beacon Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Beacon Financial and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beacon Financial	0	4	3	0	2.43
Beacon Financial Competitors	7350	29652	27040	1353	2.34

Beacon Financial currently has a consensus target price of $32.50, suggesting a potential upside of 1.88%. As a group, “Banks” companies have a potential upside of 8.96%. Given Beacon Financial’s rivals higher possible upside, analysts plainly believe Beacon Financial has less favorable growth aspects than its rivals.

Summary

Beacon Financial rivals beat Beacon Financial on 10 of the 15 factors compared.

About Beacon Financial

Truist Financial Corp. operates as a financial holding company, which engages in the provision of banking services to individuals, businesses and municipalities. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health Truist Financial Corp. operates as a financial holding company. It engages in the provision of banking services to individuals, businesses and municipalities. The company operates through the following segments: Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings. The firm offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer finance loans to individuals, credit card lending, automobile financing and equipment financing. It also markets a range of other services, including deposits, life insurance, property and casualty insurance, health insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC. insurance and commercial general liability insurance on an agency basis and through a wholesale insurance brokerage operation, merchant services, trust and retirement services, comprehensive wealth advisory services, asset management and capital markets services. The company was founded on December 6, 2019 and is headquartered in Charlotte, NC.