TCF Financial (NYSE:TCF) and First United (NASDAQ:FUNC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Insider and Institutional Ownership
80.2% of TCF Financial shares are owned by institutional investors. Comparatively, 35.5% of First United shares are owned by institutional investors. 2.5% of TCF Financial shares are owned by company insiders. Comparatively, 4.3% of First United shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
TCF Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. First United pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. TCF Financial pays out 31.6% of its earnings in the form of a dividend.
This table compares TCF Financial and First United’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares TCF Financial and First United’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TCF Financial||$1.61 billion||2.09||$304.36 million||$1.90||10.81|
|First United||$67.33 million||1.95||$10.67 million||N/A||N/A|
TCF Financial has higher revenue and earnings than First United.
Volatility & Risk
TCF Financial has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, First United has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for TCF Financial and First United, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TCF Financial presently has a consensus price target of $27.10, indicating a potential upside of 32.00%. Given TCF Financial’s higher probable upside, equities research analysts plainly believe TCF Financial is more favorable than First United.
TCF Financial beats First United on 12 of the 15 factors compared between the two stocks.
About TCF Financial
TCF Financial Corporation operates as the bank holding company for TCF National Bank that provides various financial products and services in the United States and Canada. It operates through Consumer Banking, Wholesale Banking, and Enterprise Services segments. The company offers checking, savings, and money market accounts; certificates of deposit; and individual retirement accounts. It also provides consumer loans; loans secured by personal property, as well as unsecured personal loans; lease and equipment financing products; inventory financing products; commercial real estate loans; and residential, consumer, and small business lending products. In addition, the company offers treasury services, such as investment and borrowing portfolios, as well as manages capital, debt, and market risks. Further, it provides credit and debit cards; and check cashing and remittance services. As of December 31, 2018, the company had 314 branches consisting of 189 traditional branches, 122 supermarket branches, and 3 campus branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, and South Dakota. TCF Financial Corporation was founded in 1923 and is headquartered in Wayzata, Minnesota.
About First United
First United Corporation operates as the holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; indirect and direct auto loans; and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit, and night depository facilities. It operates 25 banking offices, 1 call center, and 26 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, and Monongalia counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.
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