FHN vs TBBK: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
FHN and TBBK are similarly sized, but TBBK trades noticeably cheaper on forward earnings (8.31x vs 11.12x): the market is paying up for FHN's profile and pricing TBBK more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
FHN vs TBBK: the tie-breaker metrics
Same yardstick, side by side (as of August 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 | TBBK | What it tells you |
|---|---|---|---|
| Forward P/E | 11.12 | 8.31 | 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 | 12.88 | 12.61 | 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 | 0.61 | 1.20 | 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 | 86% of range | 54% 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 | 1.43 | 4.03 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: TBBK 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 TBBK 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 TBBK 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 TBBK 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 $82 billion in assets 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 The Bancorp (TBBK) do?
The Bancorp, Inc. is a Delaware-based financial holding company whose subsidiary, The Bancorp Bank, functions largely as behind-the-scenes infrastructure for the fintech industry rather than as a consumer-facing bank. It sponsors prepaid and debit card programs (ranking as a top U.S. issuer of prepaid cards by Nilson volume), provides banking-as-a-service and embedded-finance rails to hundreds of fintech partners, and runs specialized lending lines including real estate bridge loans, small business and SBA lending, fleet leasing, and institutional banking. Card gross dollar volume runs into the tens of billions per quarter, and fintech-related fees are a growing share of the mix.
FHN vs TBBK: 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.
- TBBK drivers: Fintech sponsorship and card volume; Fintech and specialized lending growth.
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 TBBK, the most prominent risk is credit and disclosure scrutiny around the real estate bridge loan portfolio: in 2024 activist short seller Culper Research published a report alleging the company misrepresented loan quality and was materially under-reserved, which the company disputed.
FHN or TBBK: which should you pick?
FHN vs TBBK: the full fundamentals
FHN. First Horizon reported first-quarter 2026 revenue of about $862 million, up roughly 6 percent year over year, with net income available to common shareholders near $257 million and earnings per share of about $0.53, up 21 percent from a year earlier. The shares trade around 12 times trailing earnings and roughly 1.8 times tangible book value, broadly in line with regional-bank peers.
TBBK. TBBK traded around $67 per share in July 2026 for a market cap near $2.8 billion, against a 52-week range of roughly $50 to $82. First-quarter 2026 revenue of about $134 million and diluted EPS of about $1.41 both grew double digits year over year, with return on equity around 35 percent. The low-teens earnings multiple reflects strong reported profitability discounted by ongoing questions about credit reserves and internal controls.
Headline figures (approximate, APRIL 2026): FHN shows market cap ~$12.4B, revenue (q1 2026) ~$862M, net income to common (q1 2026) ~$257M, eps (q1 2026) ~$0.53; TBBK shows market cap ~$2.8B, revenue (q1 2026) ~$134M, revenue (ttm) ~$530M, net income (q1 2026) ~$60M.
The bottom line: FHN vs TBBK
FHN and TBBK 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 TBBK exposure against your real portfolio. It is not an investment adviser.
Wondering how FHN or TBBK 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 TBBK?
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First Horizon Corporation is the holding company for First Horizon Bank, a regional lender headquartered in Memphis, Tennessee with roughly $82 billion in assets and operations across about 12 states in the Southeast and Texas. The Bancorp, Inc. 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 TBBK the better stock?
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Neither is universally better; they suit different views and risk levels. 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 TBBK?
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On forward P/E (as of August 2026), FHN trades at 11.12x and TBBK at 8.31x, so TBBK 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 TBBK?
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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 TBBK?
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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. TBBK: The most prominent risk is credit and disclosure scrutiny around the real estate bridge loan portfolio: in 2024 activist short seller Culper Research published a report alleging the company misrepresented loan quality and was materially under-reserved, which the company disputed. Separately, the company disclosed increased provisions for consumer fintech loan credit losses and acknowledged internal control weaknesses, and it has faced securities class-action litigation tied to these disclosures. Concentration in card-program and fintech-partner relationships means the loss of a large partner or heightened banking-as-a-service regulatory scrutiny could pressure fee income. As a lender, TBBK is also exposed to a weakening commercial real estate cycle and to rising charge-offs if credit deteriorates faster than reserves assume.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell FHN or TBBK; figures are approximate and dated (as of August 2026). Verify current data before investing.