BNCCORP (OTCMKTS:BNCC) vs. First Business Financial Services (NASDAQ:FBIZ) Critical Survey

BNCCORP (OTCMKTS:BNCC) and First Business Financial Services (NASDAQ:FBIZ) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares BNCCORP and First Business Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNCCORP	$57.17 million	2.24	$8.77 million	$2.48	14.52
First Business Financial Services	$279.25 million	1.63	$50.32 million	$5.95	9.19

First Business Financial Services has higher revenue and earnings than BNCCORP. First Business 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 current recommendations for BNCCORP and First Business Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNCCORP	0	0	0	0	0.00
First Business Financial Services	0	0	4	0	3.00

First Business Financial Services has a consensus price target of $67.00, indicating a potential upside of 22.49%. Given First Business Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe First Business Financial Services is more favorable than BNCCORP.

Insider and Institutional Ownership

60.1% of First Business Financial Services shares are held by institutional investors. 28.4% of BNCCORP shares are held by company insiders. Comparatively, 5.1% of First Business Financial Services shares are held by company 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.

Profitability

This table compares BNCCORP and First Business Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BNCCORP	15.34%	8.73%	0.90%
First Business Financial Services	18.02%	14.77%	1.25%

Risk and Volatility

BNCCORP has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

First Business Financial Services beats BNCCORP on 11 of the 14 factors compared between the two stocks.

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.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.