First Financial Bankshares (NASDAQ:FFIN) vs. BANCORP 34 (OTCMKTS:BCTF) Head to Head Review

BANCORP 34 (OTCMKTS:BCTF) and First Financial Bankshares (NASDAQ:FFIN) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Volatility & Risk

BANCORP 34 has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, First Financial Bankshares has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares BANCORP 34 and First Financial Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BANCORP 34	11.27%	4.26%	0.40%
First Financial Bankshares	29.81%	14.16%	1.69%

Earnings & Valuation

This table compares BANCORP 34 and First Financial Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BANCORP 34	$56.34 million	1.61	$1.69 million	$0.88	15.13
First Financial Bankshares	$599.54 million	7.50	$223.51 million	$1.69	18.60

First Financial Bankshares has higher revenue and earnings than BANCORP 34. BANCORP 34 is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for BANCORP 34 and First Financial Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BANCORP 34	0	0	0	0	0.00
First Financial Bankshares	0	3	1	0	2.25

First Financial Bankshares has a consensus target price of $38.00, suggesting a potential upside of 20.87%. Given First Financial Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe First Financial Bankshares is more favorable than BANCORP 34.

Dividends

BANCORP 34 pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. First Financial Bankshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.4%. BANCORP 34 pays out 31.8% of its earnings in the form of a dividend. First Financial Bankshares pays out 45.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First Financial Bankshares has raised its dividend for 15 consecutive years. First Financial Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

6.5% of BANCORP 34 shares are owned by institutional investors. Comparatively, 69.8% of First Financial Bankshares shares are owned by institutional investors. 7.4% of BANCORP 34 shares are owned by company insiders. Comparatively, 4.2% of First Financial Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First Financial Bankshares beats BANCORP 34 on 15 of the 17 factors compared between the two stocks.

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.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.