BancFirst (NASDAQ:BANF) and Emclaire Financial (NASDAQ:EMCF) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

33.7% of BancFirst shares are held by institutional investors. Comparatively, 6.9% of Emclaire Financial shares are held by institutional investors. 40.1% of BancFirst shares are held by insiders. Comparatively, 16.0% of Emclaire Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for BancFirst and Emclaire Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BancFirst 0 1 0 0 2.00
Emclaire Financial 0 0 0 0 N/A

BancFirst presently has a consensus price target of $60.00, suggesting a potential upside of 8.38%. Given BancFirst’s higher possible upside, analysts clearly believe BancFirst is more favorable than Emclaire Financial.

Risk and Volatility

BancFirst has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Emclaire Financial has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Dividends

BancFirst pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Emclaire Financial pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. BancFirst pays out 31.4% of its earnings in the form of a dividend. BancFirst has raised its dividend for 17 consecutive years and Emclaire Financial has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares BancFirst and Emclaire Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BancFirst $366.13 million 4.95 $125.81 million $3.82 14.49
Emclaire Financial $35.17 million 2.32 $4.21 million N/A N/A

BancFirst has higher revenue and earnings than Emclaire Financial.

Profitability

This table compares BancFirst and Emclaire Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BancFirst 27.17% 14.86% 1.68%
Emclaire Financial 11.98% 7.10% 0.55%

Summary

BancFirst beats Emclaire Financial on 11 of the 14 factors compared between the two stocks.

About BancFirst

BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. It operates through Metropolitan Banks, Community Banks, and Other Financial Services segments. The company offers checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts, and certificates of deposit, as well as overdraft protection and auto draft services. It also provides commercial, financial, and other loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; construction, farmland, one-to-four family residence, multifamily residential property, and commercial real estate loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, the company engages in the investment management and administration of trusts for individuals, corporations, and employee benefit plans, as well as bond trustee and paying agent business for various Oklahoma municipalities and governmental entities; and provision of item processing, research, and other correspondent banking services for financial institutions and governmental units. Further, it is involved in real estate investment and insurance agency services; and providing funds transfer, collection, safe deposit box, cash management, retail brokerage, and other services for individual and corporate customers. The company serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. It operates through 107 banking locations serving 58 communities in Oklahoma. 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 based in Oklahoma City, Oklahoma.

About Emclaire Financial

Emclaire Financial Corp. operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. The company's deposit products include checking, savings, and term certificate accounts; time deposits; noninterest bearing and interest bearing demand deposit accounts; and money market accounts. Its loan portfolio comprises one-to-four family mortgage loans, residential and commercial mortgages loans, home equity loans, and commercial business and commercial real estate loans; and consumer loans, such as loans for automobile purchases, home improvements not secured by real estate, capital, and other personal expenditures, as well as unsecured revolving personal lines of credit and overdraft protection. The company, through its subsidiary, Emclaire Settlement Services, LLC, also provides real estate settlement services. As of January 26, 2018, it operated through 17 retail branch offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties in Pennsylvania, as well as in Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

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