Critical Survey: BNCCORP (OTCMKTS:BNCC) and Farmers National Banc (NASDAQ:FMNB)

Farmers National Banc (NASDAQ:FMNB) and BNCCORP (OTCMKTS:BNCC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility & Risk

Farmers National Banc has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares Farmers National Banc and BNCCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	19.50%	13.03%	1.14%
BNCCORP	15.34%	8.73%	0.90%

Valuation and Earnings

This table compares Farmers National Banc and BNCCORP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$279.92 million	1.69	$54.59 million	$1.45	8.64
BNCCORP	$57.17 million	2.24	$8.77 million	$2.48	14.52

Farmers National Banc has higher revenue and earnings than BNCCORP. Farmers National Banc is trading at a lower price-to-earnings ratio than BNCCORP, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

38.7% of Farmers National Banc shares are held by institutional investors. 3.9% of Farmers National Banc shares are held by company insiders. Comparatively, 28.4% of BNCCORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Farmers National Banc and BNCCORP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	1	2	1	0	2.00
BNCCORP	0	0	0	0	0.00

Farmers National Banc presently has a consensus target price of $14.50, suggesting a potential upside of 15.72%. Given Farmers National Banc’s stronger consensus rating and higher probable upside, analysts plainly believe Farmers National Banc is more favorable than BNCCORP.

Summary

Farmers National Banc beats BNCCORP on 10 of the 14 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

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.