Analyzing Bancorp 34 (BCTF) and Its Peers

Bancorp 34 (OTCMKTS:BCTF) is one of 311 public companies in the “Banks – Regional” industry, but how does it contrast to its competitors? We will compare Bancorp 34 to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Dividends

Bancorp 34 pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Bancorp 34 pays out -56.0% of its earnings in the form of a dividend. As a group, “Banks – Regional” companies pay a dividend yield of 12.2% and pay out 18.2% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Bancorp 34 and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bancorp 34	$28.85 million	-$3.40 million	-24.00
Bancorp 34 Competitors	$5.09 billion	$1.50 billion	82.35

Bancorp 34’s competitors have higher revenue and earnings than Bancorp 34. Bancorp 34 is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Bancorp 34 and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp 34	0	0	0	0	N/A
Bancorp 34 Competitors	1332	4165	4256	63	2.31

As a group, “Banks – Regional” companies have a potential upside of 36.55%. Given Bancorp 34’s competitors higher possible upside, analysts clearly believe Bancorp 34 has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

6.5% of Bancorp 34 shares are owned by institutional investors. Comparatively, 37.6% of shares of all “Banks – Regional” companies are owned by institutional investors. 7.4% of Bancorp 34 shares are owned by company insiders. Comparatively, 16.6% of shares of all “Banks – Regional” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Bancorp 34 and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bancorp 34	-4.02%	-2.38%	-0.22%
Bancorp 34 Competitors	20.30%	9.85%	0.87%

Risk and Volatility

Bancorp 34 has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Bancorp 34’s competitors have a beta of 0.84, meaning that their average share price is 16% less volatile than the S&P 500.

Summary

Bancorp 34 competitors beat Bancorp 34 on 11 of the 12 factors compared.

About Bancorp 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.