Contrasting American Bank (OTCMKTS:AMBK) and First Horizon (NYSE:FHN)

American Bank (OTCMKTS:AMBK) and First Horizon (NYSE:FHN) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. First Horizon pays an annual dividend of $0.60 per share and has a dividend yield of 4.1%. First Horizon pays out 42.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for American Bank and First Horizon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bank	0	0	0	0	N/A
First Horizon	0	4	8	1	2.77

First Horizon has a consensus price target of $16.69, indicating a potential upside of 12.79%. Given First Horizon’s higher probable upside, analysts clearly believe First Horizon is more favorable than American Bank.

Valuation & Earnings

This table compares American Bank and First Horizon’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bank	N/A	N/A	N/A	N/A	N/A
First Horizon	$5.03 billion	1.61	$897.00 million	$1.43	10.35

First Horizon has higher revenue and earnings than American Bank.

Profitability

This table compares American Bank and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bank	N/A	N/A	N/A
First Horizon	16.07%	8.96%	0.92%

Risk and Volatility

American Bank has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Insider and Institutional Ownership

80.3% of First Horizon shares are held by institutional investors. 0.9% of First Horizon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

First Horizon beats American Bank on 11 of the 12 factors compared between the two stocks.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.