Critical Review: Flagstar Bank, National Association (FLG) and Its Rivals

Flagstar Bank, National Association (NYSE:FLG) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Flagstar Bank, National Association to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for Flagstar Bank, National Association and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	3	3	9	0	2.40
Flagstar Bank, National Association Competitors	7494	30253	27858	1490	2.35

Flagstar Bank, National Association currently has a consensus target price of $14.12, indicating a potential upside of 35.06%. As a group, “Banks” companies have a potential upside of 14.10%. Given Flagstar Bank, National Association’s stronger consensus rating and higher probable upside, research analysts plainly believe Flagstar Bank, National Association is more favorable than its peers.

Risk & Volatility

Flagstar Bank, National Association has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Flagstar Bank, National Association’s peers have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Flagstar Bank, National Association pays out 26.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend.

Profitability

This table compares Flagstar Bank, National Association and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	2.22%	1.45%	0.12%
Flagstar Bank, National Association Competitors	15.63%	9.41%	0.93%

Insider and Institutional Ownership

67.9% of Flagstar Bank, National Association shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 21.4% of Flagstar Bank, National Association shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Flagstar Bank, National Association and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flagstar Bank, National Association	$2.10 billion	-$177.00 million	69.72
Flagstar Bank, National Association Competitors	$54.82 billion	$2.42 billion	21.36

Flagstar Bank, National Association’s peers have higher revenue and earnings than Flagstar Bank, National Association. Flagstar Bank, National Association is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Flagstar Bank, National Association beats its peers on 8 of the 15 factors compared.

Flagstar Bank, National Association Company Profile

Flagstar Bank, National Association is a full-service bank serving consumers, businesses and communities. Its offerings include checking and savings accounts, residential mortgages and other home-financing products, as well as business and commercial real estate lending. The bank also provides services such as cash management and other banking solutions for businesses. Its retail banking presence is concentrated in parts of the Northeast and Midwest, while its mortgage and commercial banking activities extend beyond its branch network.