First Financial Bankshares (FFIN) & BNC Bancorp (BNCN) Financial Comparison
First Financial Bankshares (NASDAQ: FFIN) and BNC Bancorp (NASDAQ:BNCN) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility & Risk
First Financial Bankshares has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, BNC Bancorp has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
This table compares First Financial Bankshares and BNC Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Bankshares||33.03%||12.41%||1.57%|
Valuation and Earnings
This table compares First Financial Bankshares and BNC Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Financial Bankshares||$308.20 million||9.71||$106.38 million||$1.62||28.12|
First Financial Bankshares has higher revenue and earnings than BNC Bancorp. BNC Bancorp is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for First Financial Bankshares and BNC Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Bankshares||0||4||0||0||2.00|
First Financial Bankshares presently has a consensus target price of $40.50, suggesting a potential downside of 11.09%. BNC Bancorp has a consensus target price of $33.88, suggesting a potential downside of 3.63%. Given BNC Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe BNC Bancorp is more favorable than First Financial Bankshares.
First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. BNC Bancorp pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. First Financial Bankshares pays out 46.9% of its earnings in the form of a dividend. BNC Bancorp pays out 3.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional & Insider Ownership
50.1% of First Financial Bankshares shares are held by institutional investors. Comparatively, 62.6% of BNC Bancorp shares are held by institutional investors. 5.4% of First Financial Bankshares shares are held by insiders. Comparatively, 6.2% of BNC Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
First Financial Bankshares beats BNC Bancorp on 7 of the 13 factors compared between the two stocks.
First Financial Bankshares Company Profile
First Financial Bankshares, Inc. is a financial holding company. The Company, through its subsidiaries, conducts commercial banking business. As of December 31, 2016, the Company’s subsidiaries included First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc., Abilene, Texas; First Financial Trust & Asset Management Company, National Association, Abilene, Texas; First Financial Investments, Inc., Abilene, Texas, and First Financial Insurance Agency, Inc., Abilene, Texas. Its banking centers are located in Central, North Central, Southeast and West Texas. Its loan portfolio consists of loans made to businesses, professionals, individuals, and farm and ranch operations located in the primary trade areas served by its subsidiary bank. Its securities available-for-sale include the United States Treasury securities, Obligations of the United States Government sponsored enterprises and agencies and Obligations of states and political subdivisions.
BNC Bancorp Company Profile
BNC Bancorp is a one-bank holding company for Bank of North Carolina (the Bank). The Bank is a full service commercial bank, which provides a range of banking services tailored to the particular banking needs of the communities it serves. It is engaged in the business of attracting deposits from the general public and using those deposits, together with other funding from its lines of credit, to make commercial and consumer loans. It provides banking services to individuals and small to medium-sized local businesses. It also offers a range of banking services, including traditional products, such as checking and savings accounts. Its other banking services include Mortgage Lending, Small Business Administration Lending, Wealth Management Services and Insurance Services. It offers an array of residential mortgage products, including long-term fixed rate and variable rate loans. Its Wealth Management Services include financial planning, wealth management, and trust and estate planning.
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