Contrasting of Citizens Financial Group Inc. (CFG) and BankUnited Inc. (NYSE:BKU)

Citizens Financial Group Inc. (NYSE:CFG) and BankUnited Inc. (NYSE:BKU) compete with each other in the Regional – Mid-Atlantic Banks sector. We will analyze and contrast their dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial Group Inc. 5.80B 2.85 1.69B 3.46 10.64
BankUnited Inc. 1.16B 3.04 311.82M 3.03 12.02

Table 1 highlights Citizens Financial Group Inc. and BankUnited Inc.’s top-line revenue, earnings per share (EPS) and valuation. BankUnited Inc. is observed to has lower revenue and earnings than Citizens Financial Group Inc. The business with the lower P/E out of the two companies is considered for more affordable of the two firms presently. Citizens Financial Group Inc. is trading at a lower P/E ratio than BankUnited Inc., indicating that it is presently more affordable of the two stocks.

Profitability

Table 2 has Citizens Financial Group Inc. and BankUnited Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens Financial Group Inc. 29.14% 8.5% 1.1%
BankUnited Inc. 26.88% 20.8% 2.1%

Risk and Volatility

Citizens Financial Group Inc.’s 1.42 beta indicates that its volatility is 42.00% more volatile than that of Standard & Poor’s 500. Competitively, BankUnited Inc.’s beta is 1.1 which is 10.00% more volatile than Standard & Poor’s 500.

Dividends

Citizens Financial Group Inc. dividend pay is $0.98 per share with 2.74% dividend yield annually. On the other side BankUnited Inc. pays an annual dividend of $0.84 per share. It’s dividend yield is 2.34%.

Analyst Recommendations

Citizens Financial Group Inc. and BankUnited Inc. Ratings and Recommendations are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Citizens Financial Group Inc. 0 1 6 2.86
BankUnited Inc. 0 2 2 2.50

Citizens Financial Group Inc. has an average target price of $42, and a 17.09% upside potential. On the other hand, BankUnited Inc.’s potential upside is 13.67% and its average target price is $40.5. The information presented earlier suggests that Citizens Financial Group Inc. looks more robust than BankUnited Inc. as far as analyst belief.

Institutional & Insider Ownership

Institutional investors owned 0% of Citizens Financial Group Inc. shares and 98.6% of BankUnited Inc. shares. Citizens Financial Group Inc.’s share owned by insiders are 0.4%. Insiders Competitively, owned 0.3% of BankUnited Inc. shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Citizens Financial Group Inc. -0.51% 8.64% 1.15% -10.41% -15.35% 23.95%
BankUnited Inc. -0.68% 7.9% 9.09% -5.69% -9.43% 21.84%

For the past year Citizens Financial Group Inc. has stronger performance than BankUnited Inc.

Summary

Citizens Financial Group Inc. beats on 12 of the 16 factors BankUnited Inc.

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, N.A. and Citizens Bank of Pennsylvania that provide retail and commercial banking products and services in the United States. It operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers traditional banking products and services, including checking, savings, mortgage and home equity lending, student loans, personal unsecured lines and loans, credit cards, business loans, and wealth management and investment services for retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment offers various financial products and solutions, such as loans, leases, trade financing, deposits, treasury management, cash management, commercial cards, foreign exchange, interest rate risk management, corporate finance, merger and acquisition, and capital markets advisory capabilities. It serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries focusing on middle-market companies, large corporations, and institutions. As of December 31, 2016, the company operated through approximately 1,200 branches in 11 states across the New England, Mid-Atlantic, and Midwest regions, as well as through online, telephone, and mobile banking platforms. It also maintains approximately 100 retail and commercial non-branch offices located in its banking footprint and in other states, and the District of Columbia. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, including checking accounts, money market deposit accounts, savings accounts, and certificates of deposit. Its loans portfolio includes small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and mortgage warehouse lines of credit, letters of credit, and consumer loans, as well as residential loans. The company also offers integrated on-line banking, mobile banking, and telephone banking services. As of December 31, 2016, it operated through a network of 94 branches located in 15 Florida counties; and 6 banking centers in the New York metropolitan area, as well as 97 ATMs. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was founded in 2009 and is headquartered in Miami Lakes, Florida.