Critical comparison: BancFirst (NASDAQ:BANF) and Fulton Financial (NASDAQ:FULT)


BancFirst (NASDAQ:BANF – Get Rating) and Fulton Financial (NASDAQ:FULT – Get Rating) are both mid-cap financial companies, but which is the better company? We’ll compare the two companies based on their dividend strength, risk, earnings, institutional ownership, analyst recommendations, valuation, and profitability.

Dividends

BancFirst pays an annual dividend of $1.44 per share and has a dividend yield of 1.7%. Fulton Financial pays an annual dividend of $0.60 per share and has a dividend yield of 3.8%. BancFirst pays 28.6% of its profits in the form of a dividend. Fulton Financial pays 36.8% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. BancFirst has increased its dividend for 29 consecutive years and Fulton Financial has increased its dividend for 2 consecutive years.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of BancFirst and Fulton Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
BenchFirst $497.05 million 5.48 $167.63 million $5.03 16.53
Fulton Financial $997.16 million 2.55 $275.50 million $1.63 9.72

Fulton Financial has higher revenues and profits than BancFirst. Fulton Financial trades at a lower price-to-earnings ratio than BancFirst, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

42.3% of BancFirst shares are held by institutional investors. By comparison, 62.8% of Fulton Financial’s shares are held by institutional investors. 38.5% of BancFirst shares are held by insiders. By comparison, 1.0% of Fulton Financial’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of BancFirst and Fulton Financial.

Net margins Return on equity return on assets
BenchFirst 33.72% 14.75% 1.59%
Fulton Financial 27.63% 11.06% 1.06%

Volatility and risk

BancFirst has a beta of 1.25, indicating its stock price is 25% more volatile than the S&P 500. In comparison, Fulton Financial has a beta of 0.73, indicating its stock price is 27% less volatile than the S&P 500.

Analyst Notes

This is a breakdown of current ratings and price targets for BancFirst and Fulton Financial, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
BenchFirst 0 1 0 0 2.00
Fulton Financial 0 1 0 0 2.00

Fulton Financial has a consensus target price of $17.59, indicating a potential upside of 10.95%. Given Fulton Financial’s likely higher upside, analysts clearly believe Fulton Financial is more favorable than BancFirst.

Summary

BancFirst beats Fulton Financial on 10 of the 15 factors compared between the two stocks.

About BancFirst (Get an evaluation)

BancFirst Corporation operates as the bank holding company for BancFirst which provides a range of commercial banking services to retail customers and small and medium enterprises. It operates through the segments of Metropolitan Banks, Community Banks, Pegasus Bank and Other Financial Services. The company offers checking accounts, negotiable withdrawal order accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts and certificates of deposit, as well as overdraft protection and automatic drafting services. It also provides commercial, financial and other loans for working capital, the acquisition or expansion of facilities, the purchase of equipment and other needs; lending services which includes private banking, energy, commercial and residential real estate and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household items, vacations, and education. In addition, the Company is engaged in investment management and trust administration for individuals, corporations and employee benefit plans, as well as bond trustee and paying agent activities. for various Oklahoma municipalities and governmental entities; and the provision of article processing, research and other related banking services. Additionally, it is involved in real estate investment and insurance agency services; and provide funds transfer, collection, safe deposit box, cash management and other services. The Company serves customers in non-metropolitan shopping centers and cities within the Oklahoma Metropolitan Statistical Areas. It operates through 108 banking locations in Oklahoma and 3 banking locations in Dallas, Texas. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in November 1988. BancFirst Corporation was incorporated in 1984 and is headquartered in Oklahoma City, Oklahoma.

About Fulton Financial (Get an evaluation)

Fulton Financial Corporation operates as a financial holding company that provides personal and business banking products and services. It accepts various checking accounts and savings deposit products, certificates of deposit and individual retirement accounts. The Company also offers secured consumer loans, including home equity loans and lines of credit, auto loans, personal lines of credit and current account overdraft protection; giant construction and residential mortgages; and commercial lending products including commercial, commercial and industrial real estate loans and construction loans, as well as equipment lease financing loans. In addition, it provides letters of credit, cash management services and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance and investment advisory services. In addition, the company holds passive investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through traditional financial center banking, as well as through a network of ATMs, telephone banking, mobile banking and online banking. The company operated branches in Pennsylvania, Maryland, Delaware, New Jersey and Virginia. Fulton Financial Corporation was incorporated in 1882 and is headquartered in Lancaster, Pennsylvania.



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