Comparative Financial Analysis of Guaranty Bancshares (NASDAQ:GNTY) and Fulton Financial (NASDAQ:FULT)

Fulton Financial (NASDAQ:FULT) and Guaranty Bancshares (NASDAQ:GNTY) are two notable entities in the financial sector. In this analysis, we will gauge which company stands out as the superior option by comparing them across various parameters, including analyst recommendations, institutional ownership, valuation, earnings performance, risk profile, dividends, and overall profitability.

Earnings & Valuation

The following table outlines the earnings and valuation metrics for both Fulton Financial and Guaranty Bancshares. The comparison reveals that Fulton Financial boasts a significantly higher gross revenue and net income than Guaranty Bancshares, along with a lower price-to-earnings ratio, implying better value at present.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulton Financial	$1.13 billion	3.17	$284.28 million	$1.58	12.41
Guaranty Bancshares	$112.33 million	3.53	$30.04 million	$2.39	14.51

Dividends

Fulton Financial offers an annual dividend of $0.72 per share with a dividend yield of 3.7%. In contrast, Guaranty Bancshares provides a higher annual dividend of $0.96 per share, yielding 2.8%. Both companies maintain healthy dividend payout ratios, with Fulton Financial distributing 45.6% and Guaranty Bancshares 40.2% of their earnings in dividends. These ratios indicate that both firms are likely to sustain their dividend payouts in the foreseeable future.

Volatility and Risk

Examining their share price volatility, Fulton Financial has a beta of 0.78, suggesting it is less volatile than the broader market by 22%. Guaranty Bancshares shows a lower beta of 0.6, indicating a 40% reduced volatility compared to the S&P 500. This information could influence investors concerned about risk exposure.

Analyst Ratings

The following table outlines the recent ratings and target prices for both companies. Fulton Financial has a consensus price target indicating minor potential downside, while Guaranty Bancshares presents a favorable upside potential according to analysts, suggesting a preference for Guaranty over Fulton.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulton Financial	0	3	2	0	2.40
Guaranty Bancshares	0	2	1	0	2.33

Institutional & Insider Ownership

Research indicates that 72.0% of Fulton Financial shares are held by institutional investors, whereas Guaranty Bancshares has a lower institutional ownership of 39.4%. On the insider ownership front, Fulton Financial has 1.1% compared to Guaranty Bancshares’ 26.4%. High institutional ownership may reflect a robust belief among major investors in the potential of a company to outperform in the long term.

Profitability

A profitability comparison is showcased in the following table, detailing net margins, return on equity, and return on assets for both companies. Fulton Financial exhibits stronger figures across all profitability metrics.

	Net Margins	Return on Equity	Return on Assets
Fulton Financial	16.37%	11.33%	1.05%
Guaranty Bancshares	15.01%	8.86%	0.88%

Summary

In this comparative analysis, Fulton Financial outperformed Guaranty Bancshares on 10 of the 16 discussed financial factors. Such results indicate that Fulton might be viewed as having a stronger overall position in the financial market.

About Fulton Financial

Fulton Financial Corporation functions as a financial holding company offering a range of consumer and commercial banking services across multiple states, including Pennsylvania and Delaware. They provide a variety of banking products such as loans, checking accounts, and financial management services.

About Guaranty Bancshares

Guaranty Bancshares, Inc. operates as a bank holding company for Guaranty Bank & Trust, providing banking solutions primarily focused on small- to medium-sized businesses and individuals, including a full range of loan and deposit products.

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