Critical Analysis: Flagstar Financial (FLG) & Its Peers

Flagstar Financial (NYSE:FLG) is one of 43 public companies in the “Savings institutions, except federal” industry, but how does it contrast to its competitors? We will compare Flagstar Financial to similar companies based on the strength of its risk, dividends, earnings, valuation, analyst recommendations, profitability and institutional ownership.

Valuation and Earnings

This table compares Flagstar Financial and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flagstar Financial	$2.93 billion	-$79.00 million	-2.07
Flagstar Financial Competitors	$358.68 million	$13.12 million	-0.67

Flagstar Financial has higher revenue, but lower earnings than its competitors. Flagstar Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Flagstar Financial and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Financial	-18.40%	-11.35%	-0.78%
Flagstar Financial Competitors	8.04%	4.74%	0.56%

Institutional and Insider Ownership

67.9% of Flagstar Financial shares are held by institutional investors. Comparatively, 44.7% of shares of all “Savings institutions, except federal” companies are held by institutional investors. 6.4% of Flagstar Financial shares are held by company insiders. Comparatively, 8.4% of shares of all “Savings institutions, except federal” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Flagstar Financial has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Flagstar Financial’s competitors have a beta of 0.58, meaning that their average share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Flagstar Financial and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Financial	0	2	0	0	2.00
Flagstar Financial Competitors	127	600	372	7	2.23

Flagstar Financial currently has a consensus price target of $11.75, indicating a potential upside of 30.41%. As a group, “Savings institutions, except federal” companies have a potential upside of 2.74%. Given Flagstar Financial’s higher possible upside, research analysts plainly believe Flagstar Financial is more favorable than its competitors.

Dividends

Flagstar Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Flagstar Financial pays out -0.9% of its earnings in the form of a dividend. As a group, “Savings institutions, except federal” companies pay a dividend yield of 3.8% and pay out 72.5% of their earnings in the form of a dividend.

Summary

Flagstar Financial competitors beat Flagstar Financial on 10 of the 15 factors compared.

Flagstar Financial Company Profile

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.