FB Financial or Hancock Whitney: which stock to buy?

2026-07-11 · By Lubin Danilo, founder of Lubin Investment

FB Financial and Hancock Whitney are two regional banks from the southern United States I had never compared before. FB Financial grows faster and buys back its stock, but is priced higher. Hancock Whitney is slower but cheaper. Neither is a bad choice, but they do not serve the same objective.

Two southern US banks, two neighboring markets

FB Financial is the parent company of FirstBank, based in Nashville, Tennessee, with about $16.5 billion in assets and 90 branches across Tennessee, Kentucky, Alabama, and Georgia. Hancock Whitney is based in Gulfport, Mississippi, with over 200 branches across the Gulf South: Mississippi, Louisiana, Alabama, Florida, and Texas. Two geographically neighboring regional banks, but with fairly different financial profiles.

Growth: FB Financial clearly ahead

FB Financial validates 8 out of 10 criteria in my screener, Hancock Whitney 7. The gap plays out first on growth: FB Financial's revenue has grown 23.2% a year on average over five years, versus only 4.8% for Hancock Whitney, well below my 10% threshold. FB Financial also recently announced a new $175 million stock buyback program, a sign of management confidence in future cash generation.

The two banks share common strengths: a solid net margin (26.4% for FB Financial, 33.5% for Hancock Whitney), low net debt relative to free cash flow (1.21 times and 1.68 times respectively, well under my 3-year threshold), and good conversion of accounting profit into real cash ($1.25 and $1.22 of cash for every $1 of profit).

FB Financial's honest weak spot: cash growth in decline

Here is where FB Financial's case gets complicated. Despite its strong revenue growth, its free cash flow has declined 35.5% a year on average over five years, a clear signal not to ignore. This is not necessarily a red alert: this kind of mismatch can come from a recent acquisition whose integration costs temporarily weigh on cash, or a base effect tied to an exceptional comparison year. But it is a point I want to see stabilize before considering the case flawless. Hancock Whitney also shows a slightly declining free cash flow (-3.0% a year), but the magnitude is far smaller.

The price: Hancock Whitney cheaper on the multiple

FB Financial trades at roughly 16.8 times annual free cash flow, versus roughly 12.2 times for Hancock Whitney: a clear gap that reflects the growth premium paid for FB Financial. My valuation model puts a reasonable buy price under $25.34 for FB Financial (versus $56.68 today) and under $28.43 for Hancock Whitney (versus $75.41 today): both stocks trade well above that threshold currently, but the gap is wider for FB Financial.

How I call it

Neither is a bad choice, but they do not fit the same investor profile. FB Financial checks more boxes and grows faster, but pays more for its growth and shows a cash signal worth watching. Hancock Whitney is slower, but cheaper, and its cash weak spot is more limited. If I had to choose today at an equal margin of safety, I would primarily watch for FB Financial's free cash flow to stabilize before favoring it despite its better score.

Key takeaways

FB Financial (8/10, Nashville, Tennessee) grows at 23.2% a year, versus 4.8% for Hancock Whitney (7/10, Gulfport, Mississippi)
Common weak spot: free cash flow declining over 5 years for both (-35.5% for FB Financial, -3.0% for Hancock Whitney, a far smaller decline)
FB Financial is priced higher (roughly 16.8 times free cash flow versus 12.2 times for Hancock Whitney)
Both stocks trade above my reasonable buy price currently
Verdict: FB Financial for growth if the cash decline stabilizes, Hancock Whitney for a more cautious, cheaper profile

FAQ

Why is FB Financial rated higher than Hancock Whitney?

Mainly thanks to much faster revenue growth (23.2% a year versus 4.8%) and a recent $175 million stock buyback program.

Why is FB Financial's free cash flow declining despite good growth?

It could stem from a recent acquisition whose integration costs temporarily weigh on cash, or a base effect. It is a point I want to see stabilize before considering the case flawless.

Which of the two banks is cheaper?

Hancock Whitney, at roughly 12.2 times free cash flow versus roughly 16.8 times for FB Financial. Both still trade above my reasonable buy price currently.

Should you buy FB Financial or Hancock Whitney now?

It depends on your profile: growth with a cash caveat for FB Financial, a more cautious and cheaper profile for Hancock Whitney. This is not personalized investment advice, do your own research.

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About the author

Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I find fundamental analysis fascinating, and it has delivered excellent results. For three years now, my performance has beaten the S&P 500. But analyzing every stock took too much time: sites with incomplete data, calculation methods and criteria never aligned with mine. And spotting the best stocks was just as time-consuming, even with my own well-defined checklist. So I put my software development background to work to build this software, base my investment strategy on its results, and share it with people who share the same passion as me. It judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).