Enterprise Financial Services (NASDAQ:EFSC – Get Free Report) and BNCCORP (OTCMKTS:BNCC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
72.2% of Enterprise Financial Services shares are owned by institutional investors. 2.3% of Enterprise Financial Services shares are owned by company insiders. Comparatively, 28.4% of BNCCORP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Enterprise Financial Services and BNCCORP”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enterprise Financial Services | $920.75 million | 2.31 | $185.27 million | $5.14 | 11.16 |
| BNCCORP | $52.44 million | 2.11 | $7.93 million | $2.50 | 12.45 |
Enterprise Financial Services has higher revenue and earnings than BNCCORP. Enterprise Financial Services is trading at a lower price-to-earnings ratio than BNCCORP, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Enterprise Financial Services and BNCCORP, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enterprise Financial Services | 0 | 1 | 3 | 0 | 2.75 |
| BNCCORP | 0 | 0 | 0 | 0 | 0.00 |
Enterprise Financial Services presently has a consensus price target of $65.67, indicating a potential upside of 14.50%. Given Enterprise Financial Services’ stronger consensus rating and higher probable upside, research analysts clearly believe Enterprise Financial Services is more favorable than BNCCORP.
Risk and Volatility
Enterprise Financial Services has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Profitability
This table compares Enterprise Financial Services and BNCCORP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enterprise Financial Services | 19.98% | 10.82% | 1.24% |
| BNCCORP | 15.94% | 8.95% | 0.91% |
Summary
Enterprise Financial Services beats BNCCORP on 12 of the 14 factors compared between the two stocks.
About Enterprise Financial Services
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. It provides checking, savings, money market accounts, and certificates of deposit. The company also provides commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, agricultural, consumer, and other loan products. In addition, it offers treasury management and international trade services; tax credit brokerage services; life insurance premium and sponsor finance; tax credit related lending; other deposit accounts, such as community associations, property management, third party escrow, and trust services; treasury management product and services; customized solutions and products; cash management; fiduciary, investment management, and financial advisory services; and customer hedging products, including international banking, card services, and tax credit businesses. Further, the company provides online, device applications, text, and voice banking; remote deposit capture; internet banking, mobile banking, cash management, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging; and controlled disbursements, repurchase agreements, and sweep investment accounts. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.
About BNCCORP
BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.
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