Comparing BANCORP 34 (OTCMKTS:BCTF) & First Horizon (NYSE:FHN)

First Horizon (NYSE:FHN) and BANCORP 34 (OTCMKTS:BCTF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares First Horizon and BANCORP 34’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Horizon	20.54%	11.65%	1.23%
BANCORP 34	13.45%	4.02%	0.38%

Insider and Institutional Ownership

80.3% of First Horizon shares are held by institutional investors. Comparatively, 6.5% of BANCORP 34 shares are held by institutional investors. 0.9% of First Horizon shares are held by insiders. Comparatively, 7.4% of BANCORP 34 shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares First Horizon and BANCORP 34″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Horizon	$5.00 billion	2.30	$982.00 million	$2.00	12.12
BANCORP 34	$54.19 million	1.86	$7.86 million	$0.96	15.42

First Horizon has higher revenue and earnings than BANCORP 34. First Horizon is trading at a lower price-to-earnings ratio than BANCORP 34, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for First Horizon and BANCORP 34, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Horizon	1	11	9	0	2.38
BANCORP 34	0	0	0	0	0.00

First Horizon presently has a consensus price target of $26.45, indicating a potential upside of 9.13%. Given First Horizon’s stronger consensus rating and higher possible upside, research analysts clearly believe First Horizon is more favorable than BANCORP 34.

Volatility & Risk

First Horizon has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, BANCORP 34 has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Summary

First Horizon beats BANCORP 34 on 12 of the 14 factors compared between the two stocks.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

About BANCORP 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.