First HorizonXP

First Horizon vs XP

This page compares First Horizon (First Horizon Corp.) and XP (XP Inc.) across business models, financial performance, and market context, presenting neutral, accessible information for readers. Educa...

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Investment Analysis

First Horizon

Pros

  • First Horizon has a diversified business model across regional, specialty, and corporate banking, supporting stable revenue streams.
  • The company reported strong third-quarter 2025 earnings of $254 million with improving EPS, demonstrating profitability momentum.
  • First Horizon trades at a reasonable forward P/E of about 11.17, with an attractive dividend yield near 2.86%, appealing for income investors.

Considerations

  • Earnings declined approximately 14.7% year-on-year in 2024 despite modest revenue growth, indicating some margin pressure.
  • The company carries a moderate debt-to-equity ratio above 60%, which may pose risks in a rising interest rate environment.
  • Market cap around $10.5 billion and regional banking focus may limit exposure and growth potential compared to larger diversified peers.
XP

XP

XP

Pros

  • XP Inc. is a leading digital brokerage in Latin America, benefiting from strong secular trends in fintech adoption and wealth management expansion.
  • The company has shown robust top-line growth driven by increasing active client base and transaction volumes.
  • XP's technology-driven platform offers scalability and operational efficiency enhancing long-term profitability prospects.

Considerations

  • XP faces regulatory risks in multiple Latin American jurisdictions which may impact business operations or compliance costs.
  • Exposure to emerging market economic fluctuations introduces earnings volatility and currency risks.
  • Profitability may be pressured by competitive fintech landscape and costs associated with rapid expansion and technology investment.

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