First Busey Corporation (NASDAQ: BUSE) and The Bancorp (NASDAQ:TBBK) are both large-cap banks – nec companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares First Busey Corporation and The Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Busey Corporation 22.02% 11.42% 1.26%
The Bancorp -16.27% -1.70% -0.12%

Analyst Recommendations

This is a summary of recent recommendations for First Busey Corporation and The Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Busey Corporation 0 3 0 0 2.00
The Bancorp 0 1 2 0 2.67

First Busey Corporation currently has a consensus target price of $32.67, suggesting a potential upside of 4.87%. The Bancorp has a consensus target price of $7.25, suggesting a potential downside of 18.26%. Given First Busey Corporation’s higher probable upside, equities research analysts clearly believe First Busey Corporation is more favorable than The Bancorp.

Insider & Institutional Ownership

45.5% of First Busey Corporation shares are owned by institutional investors. Comparatively, 75.2% of The Bancorp shares are owned by institutional investors. 9.6% of First Busey Corporation shares are owned by company insiders. Comparatively, 12.4% of The Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

First Busey Corporation has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, The Bancorp has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares First Busey Corporation and The Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
First Busey Corporation $240.06 million 5.91 $49.69 million $1.52 20.49
The Bancorp $144.70 million 3.42 -$96.49 million $0.06 147.83

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

Dividends

First Busey Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. The Bancorp does not pay a dividend. First Busey Corporation pays out 47.4% of its earnings in the form of a dividend.

Summary

First Busey Corporation beats The Bancorp on 9 of the 15 factors compared between the two stocks.

First Busey Corporation Company Profile

First Busey Corporation (First Busey) is a financial holding company. The Company offers a range of financial services through its banking and non-banking subsidiaries. The Company operates through three segments: Banking, Remittance Processing and Wealth Management. The Banking segment provides a range of banking services to individual and corporate customers through its branch network in downstate Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its branch in Indianapolis, Indiana. The Remittance Processing segment provides for online bill payments, lockbox and walk-in payments. The Wealth Management segment provides a range of asset management, investment and fiduciary services to individuals, businesses and foundations, philanthropic advisory services and farm and brokerage services. The Company conducts the business of banking and related services through Busey Bank. The Company’s subsidiaries also include First Community Financial Bank.

The Bancorp Company Profile

The Bancorp, Inc. is a financial holding company and its primary subsidiary is The Bancorp Bank (the Bank). The Company has four primary lines of specialty lending: securities backed lines of credit (SBLOC), automobile fleet and other equipment leasing, Small Business Administration (SBA), loans and loans generated for sale into capital markets primarily through both commercial mortgage backed securities (CMBS) and collateralized loan obligations (CLOs). SBLOCs are loans, which are generated through institutional banking affinity groups and are collateralized by marketable securities. SBLOCs are offered in conjunction with brokerage accounts. Automobile fleet and other equipment leases are generated in a range of Atlantic Coast and other states. SBA loans and loans generated for sale into CMBS and securitization capital markets are made nationally. Its prepaid card, private label banking for investment advisory companies and card payment processing are its primary sources of deposits.

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