FHN vs LOB: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
FHN is the larger of the two ($10.84B market cap): the incumbent the market prices for continued execution (9.82x forward earnings, beta 0.63). LOB is the smaller challenger ($1.62B), cheaper on forward earnings (8.16x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
FHN vs LOB: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | FHN | LOB | What it tells you |
|---|---|---|---|
| Market cap | $10.84B | $1.62B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 9.82 | 8.16 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 16.58 | 12.25 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.63 | 1.94 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 44% of range | 37% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.31 | 1.33 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: LOB is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how FHN and LOB affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FHN and LOB share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FHN and LOB exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does First Horizon Corporation (FHN) do?
First Horizon Corporation is the holding company for First Horizon Bank, a regional lender headquartered in Memphis, Tennessee with roughly $84 billion in assets (~$84.3 billion at September 30, 2026) and operations across about 12 states in the Southeast and Texas. The bank offers commercial and private banking, consumer and small-business services, wealth and trust management, retail brokerage, capital markets, and fixed income. It holds leading deposit market share positions in Tennessee and Louisiana, with additional density in Florida, the Carolinas, Virginia, Atlanta, and the Dallas and Houston markets.
What does Live Oak Bancshares (LOB) do?
Live Oak Bancshares is the parent of Live Oak Bank, a Wilmington, North Carolina lender that has become the largest originator of SBA 7(a) small business loans in the United States. Instead of building branches, Live Oak underwrites nationally through industry-specific verticals (for example veterinarians, pharmacists, dentists, self-storage operators and solar contractors), pairing niche expertise with a cloud-native technology stack that traces back to nCino, the banking-software company Live Oak helped incubate. Revenue comes from net interest income on a growing loan book plus non-interest income from selling the guaranteed portions of SBA loans, and the bank funds itself largely with high-yield online deposits rather than a branch network.
FHN vs LOB: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- FHN drivers: Sun Belt regional growth; Net interest income and margin.
- LOB drivers: Dominant SBA franchise; Loan growth and net interest income.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: As a regional bank, First Horizon carries interest rate risk, since a falling or inverted yield curve can compress margins. For LOB, lOB is more cyclical than a typical bank because its borrowers are small businesses that are highly sensitive to interest rates, inflation, and economic slowdowns, so credit costs can rise quickly in a downturn.
FHN or LOB: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FHN if you believe its drivers more; LOB if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FHN and LOB guides.
FHN vs LOB: the full fundamentals
FHN. The trailing P/E of ~16.8x is inflated by the Q3 2026 mortgage-sale charge; on 2027 estimates of ~$2.33 per share the shares trade near 10x, and at about 1.3x book. That is cheaper than the ~12x trailing multiple the stock carried in spring 2026, after a ~9% decline over the last three months. The 21 analysts covering FHN rate it a buy on average with a mean target near $27, and the next quarterly report is expected around January 13, 2027.
LOB. At about $35 on October 16, 2026, LOB carried a market cap near $1.6 billion, ~12x trailing earnings and ~1.3x book value, a lower multiple than in July when the stock was near $41. The forward P/E of ~8x leans on analysts' expectation that EPS climbs to ~$4.28 in 2027, so it is only as reliable as the credit outlook behind it. Q3 2026 results on October 21 (consensus EPS ~$0.66 on ~$172 million of revenue) are the next check.
Headline figures (approximate, October 2026): FHN shows market cap ~$10.95B (share price ~$23.12), revenue (ttm) ~$3.5B (Q3 2026 ~$883M), net income (ttm) ~$1.03B, adjusted eps (q3 2026) ~$0.53 vs ~$0.52 expected; LOB shows market cap ~$1.6B, revenue (ttm) ~$526M, revenue growth (q2 2026, yoy) ~12%, net income (ttm) ~$132M (~26.5% profit margin).
The bottom line: FHN vs LOB
FHN and LOB are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FHN and LOB exposure against your real portfolio. It is not an investment adviser.
Wondering how FHN or LOB fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in First Horizon Corporation with AI
Connect the broker you already use and ask Walnut's AI how FHN fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between FHN and LOB?
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First Horizon Corporation is the holding company for First Horizon Bank, a regional lender headquartered in Memphis, Tennessee with roughly $84 billion in assets (~$84.3 billion at September 30, 2026) and operations across about 12 states in the Southeast and Texas. Live Oak Bancshares is the parent of Live Oak Bank, a Wilmington, North Carolina lender that has become the largest originator of SBA 7(a) small business loans in the United States. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is FHN or LOB the better stock?
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Neither is universally better. FHN is the larger incumbent; LOB is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, FHN or LOB?
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On forward P/E (as of October 2026), FHN trades at 9.82x and LOB at 8.16x, so LOB is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both FHN and LOB?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of FHN vs LOB?
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FHN: As a regional bank, First Horizon carries interest rate risk, since a falling or inverted yield curve can compress margins. Credit risk is meaningful because a downturn in its Southeastern and Texas markets, including commercial real estate exposure, could raise charge-offs from the low levels seen recently. Deposit competition and the possibility of funding outflows remain a concern after the 2023 regional-banking stress. The stock also lost the premium tied to the TD takeover when that deal collapsed, and regulatory capital requirements could limit buybacks. The mortgage sale adds execution risk of its own: it is not settled until early in Q4 2026, and the promised accretion depends on redeploying the proceeds into loans at better yields without loosening credit standards. Because the loss on the sale runs through GAAP earnings, trailing GAAP EPS (~$1.38) now understates the bank's ongoing earnings power, and screens that rely on the trailing P/E will show the stock as more expensive than adjusted figures imply. LOB: LOB is more cyclical than a typical bank because its borrowers are small businesses that are highly sensitive to interest rates, inflation, and economic slowdowns, so credit costs can rise quickly in a downturn. A large share of non-interest income comes from selling the guaranteed portions of SBA loans, and those gain-on-sale premiums fluctuate with market demand and secondary-market pricing, making quarterly earnings lumpy. The bank is also exposed to SBA program and policy changes, since government guarantees and fees are central to its model. Its reliance on high-cost online deposits pressures net interest margins when funding competition intensifies, and rising competition from fintechs like Bluevine and Funding Circle and rivals like NewtekOne, Huntington, and Ready Capital could compress spreads. Credit worries are already visible in the share price: in October 2026 Piper Sandler cut its target to $38 and lowered estimates on higher expected provisions, and the stock fell ~15% over three months. Finally, the stock trades at a growth-bank valuation, so any slowdown in loan growth or uptick in charge-offs can drive outsized price declines.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell FHN or LOB; figures are approximate and dated (as of October 2026). Verify current data before investing.