Critical Contrast: Akbank T.A.S. (OTCMKTS:AKBTY) & First Bancshares (NASDAQ:FBMS)

Akbank T.A.S. (OTCMKTS:AKBTY) and First Bancshares (NASDAQ:FBMS) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Dividends

Akbank T.A.S. pays an annual dividend of $0.09 per share and has a dividend yield of 2.6%. First Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. First Bancshares pays out 39.7% of its earnings in the form of a dividend.

Risk and Volatility

Akbank T.A.S. has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, First Bancshares has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Akbank T.A.S. and First Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akbank T.A.S.	N/A	N/A	N/A
First Bancshares	18.71%	8.82%	1.05%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Akbank T.A.S. and First Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akbank T.A.S.	0	0	0	0	N/A
First Bancshares	0	1	2	0	2.67

First Bancshares has a consensus price target of $35.50, indicating a potential upside of 10.49%. Given First Bancshares’ higher possible upside, analysts clearly believe First Bancshares is more favorable than Akbank T.A.S..

Earnings & Valuation

This table compares Akbank T.A.S. and First Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akbank T.A.S.	$8.80 billion	1.03	$3.67 billion	N/A	N/A
First Bancshares	$387.64 million	2.59	$75.46 million	$2.52	12.75

Akbank T.A.S. has higher revenue and earnings than First Bancshares.

Institutional & Insider Ownership

70.0% of First Bancshares shares are owned by institutional investors. 3.5% of First Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

First Bancshares beats Akbank T.A.S. on 11 of the 14 factors compared between the two stocks.

About Akbank T.A.S.

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through Consumer Banking and Private Banking; Commercial Banking, Corporate Banking, and SME Banking; and Treasury, Other, and Unallovated segments. The company's consumer banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans financing for investments, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and working capital management, delivering cash management services based on customers' requests, such as collection and payment services, and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; and marketing and pricing activities related to treasury products. Further, it provides financial leasing services, investment and pension funds management, and portfolio management, as well as offers payment services and issues electronic money. Akbank T.A.S. was incorporated in 1948 and is headquartered in Istanbul, Turkey.

About First Bancshares

The First Bancshares, Inc. operates as the bank holding company for The First Bank that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes, construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers online internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant services, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company operates full-service banking and financial service offices, motor bank facility, and loan production offices in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.