Critical Contrast: BNCCORP (OTCMKTS:BNCC) versus F.N.B. (NYSE:FNB)

F.N.B. (NYSE:FNB) and BNCCORP (OTCMKTS:BNCC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current recommendations for F.N.B. and BNCCORP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	1	5	0	2.83
BNCCORP	0	0	0	0	N/A

F.N.B. presently has a consensus price target of $16.33, suggesting a potential upside of 12.64%. Given F.N.B.’s higher probable upside, research analysts plainly believe F.N.B. is more favorable than BNCCORP.

Earnings and Valuation

This table compares F.N.B. and BNCCORP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$1.56 billion	3.35	$485.00 million	$1.09	13.30
BNCCORP	$53.28 million	1.76	$5.70 million	$2.04	12.96

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

Insider and Institutional Ownership

79.3% of F.N.B. shares are owned by institutional investors. 1.0% of F.N.B. shares are owned by insiders. Comparatively, 28.4% of BNCCORP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

F.N.B. has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares F.N.B. and BNCCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F.N.B.	16.29%	8.49%	1.10%
BNCCORP	14.18%	7.02%	0.78%

Summary

F.N.B. beats BNCCORP on 11 of the 13 factors compared between the two stocks.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

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.