CFR vs FHN

For growth investors, Cullen/Frost Bankers, Inc.

(CFR) is the stronger pick with 2. 5% revenue growth year-over-year, versus 1. 0% for First Horizon Corporation (FHN). First Horizon Corporation (FHN) offers the better valuation at 13. 0x trailing P/E (11. 4x forward), making it the more compelling value choice. Analysts rate Cullen/Frost Bankers, Inc. (CFR) a "Hold" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, First Horizon Corporation (FHN) is the cheapest at 13.

0x versus Cullen/Frost Bankers, Inc. at 14. 0x. On forward P/E, First Horizon Corporation is actually cheaper at 11. 4x.

Over the past 5 years, First Horizon Corporation (FHN) delivered a total return of +43.

6%, compared to +26. 6% for Cullen/Frost Bankers, Inc. (CFR). Over 10 years, the gap is even starker: CFR returned +181. 5% versus FHN's +119. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Cullen/Frost Bankers, Inc.

(CFR) is the lower-risk stock at 0. 82β versus First Horizon Corporation's 1. 10β — meaning FHN is approximately 33% more volatile than CFR relative to the S&P 500. On balance sheet safety, First Horizon Corporation (FHN) carries a lower debt/equity ratio of 50% versus 104% for Cullen/Frost Bankers, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cullen/Frost Bankers, Inc.

(CFR) is pulling ahead at 2. 5% versus 1. 0% for First Horizon Corporation (FHN). On earnings-per-share growth, the picture is similar: First Horizon Corporation grew EPS 38. 2% year-over-year, compared to 11. 8% for Cullen/Frost Bankers, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cullen/Frost Bankers, Inc.

(CFR) is the more profitable company, earning 22. 2% net margin versus 19. 7% for First Horizon Corporation — meaning it keeps 22. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CFR leads at 26. 4% versus 25. 7% for FHN. At the gross margin level — before operating expenses — CFR leads at 75. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, First Horizon Corporation (FHN) trades at 11.

4x forward P/E versus 13. 3x for Cullen/Frost Bankers, Inc. — 1. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FHN: 14. 4% to $28. 00.

All stocks in this comparison pay dividends.

Cullen/Frost Bankers, Inc. (CFR) offers the highest yield at 2. 9%, versus 2. 6% for First Horizon Corporation (FHN).

For long-horizon retirement investors, Cullen/Frost Bankers, Inc.

(CFR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 2. 9% yield, +181. 5% 10Y return). Both have compounded well over 10 years (CFR: +181. 5%, FHN: +119. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.