Cullen/Frost Bankers, Inc. (CFR) vs First Horizon Corporation (FHN)

Cullen/Frost Bankers, Inc. and First Horizon Corporation are both Banks Regional companies. First Horizon Corporation is the larger, with a market value of $11.0B against $9.7B — 1.1× the size. First Horizon Corporation trades at the lower P/E: 11.1× against 14.9×. Cullen/Frost Bankers, Inc. grew revenue faster over the last twelve months: 1.92% against 1.67%. Cullen/Frost Bankers, Inc. has the higher net margin (22.9% vs 20.6%) and the lower return on invested capital (0.00% vs 13.0%). Both pay a dividend; First Horizon Corporation yields more (4.36% vs 3.68%). Across the 20 metrics below, First Horizon Corporation leads on 11 and Cullen/Frost Bankers, Inc. on 9.

Valuation

Metric CFR FHN Banks Regional median
P/E 14.88 11.12 12.15
P/S 3.36 2.23 2.37
P/B 2.20 1.27 1.21
Price to free cash flow 18.11 10.93 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.21 1.65 2.27
Earnings yield 6.72% 8.99% 8.11%
Free cash flow yield 5.52% 9.15% 8.98%

Profitability

Metric CFR FHN Banks Regional median
Gross margin 78.50% 70.59% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 22.90% 20.56% 18.66%
Free cash flow margin 18.54% 20.42% 21.18%
Return on equity 15.72% 11.66% 10.64%
Return on assets 1.27% 1.23% 1.13%
Return on invested capital 0.00% 12.99% 8.33%

Growth

Metric CFR FHN Banks Regional median
Revenue growth (TTM) 1.92% 1.67% 6.61%
EPS growth (last fiscal year) 11.84% 37.50% —
Revenue growth, 5-year CAGR 14.46% 8.01% 12.30%
Net income growth, 5-year CAGR 14.45% 3.07% 9.71%

Health

Metric CFR FHN Banks Regional median
Debt to equity 0.05 0.14 0.22
Current ratio 0.63 0.97 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CFR FHN Banks Regional median
Dividend yield 3.68% 4.36% 3.75%
Payout ratio 0.33 0.32 0.27

Size

Metric CFR FHN Banks Regional median
Market cap 9.71b 10.98b 921.07m

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