BancFirst (NASDAQ:BANF – Get Rating) and Virginia National Bankshares (OTCMKTS:VABK – Get Rating) 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.
Dividends
BancFirst pays an annual dividend of $1.60 per share and has a dividend yield of 2.0%. Virginia National Bankshares pays an annual dividend of $1.32 per share and has a dividend yield of 3.9%. BancFirst pays out 27.7% of its earnings in the form of a dividend. Virginia National Bankshares pays out 29.1% 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. BancFirst has raised its dividend for 29 consecutive years.
Insider & Institutional Ownership
45.9% of BancFirst shares are owned by institutional investors. Comparatively, 30.3% of Virginia National Bankshares shares are owned by institutional investors. 34.7% of BancFirst shares are owned by company insiders. Comparatively, 12.3% of Virginia National 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BancFirst | $603.57 million | 4.26 | $193.10 million | $5.77 | 13.55 |
| Virginia National Bankshares | $70.39 million | 2.54 | $23.44 million | $4.54 | 7.39 |
BancFirst has higher revenue and earnings than Virginia National Bankshares. Virginia National Bankshares is trading at a lower price-to-earnings ratio than BancFirst, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for BancFirst and Virginia National Bankshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BancFirst | 1 | 0 | 0 | 0 | 1.00 |
| Virginia National Bankshares | 0 | 0 | 0 | 0 | N/A |
BancFirst presently has a consensus target price of $94.50, suggesting a potential upside of 20.91%. Given BancFirst’s higher probable upside, equities research analysts clearly believe BancFirst is more favorable than Virginia National Bankshares.
Profitability
This table compares BancFirst and Virginia National Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BancFirst | 31.99% | 16.09% | 1.54% |
| Virginia National Bankshares | 33.80% | 18.52% | 1.43% |
Volatility & Risk
BancFirst has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Virginia National Bankshares has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.
Summary
BancFirst beats Virginia National Bankshares on 12 of the 15 factors compared between the two stocks.
About BancFirst
BancFirst Corp. is a bank holding company, which provides retail and commercial banking services. Its services include commercial, real estate, agricultural and consumer lending, depository and funds transfer services, collections, safe deposit boxes, cash management services, retail brokerage services, and other services tailored for both individual and corporate customers. The firm operates through the following business segments: Metropolitan Banks, Community Banks, Pegasus, Worthington, and Other Financial Services, and Executive Operations and Support. The Metropolitan Banks segment consists of banking locations in the metropolitan Oklahoma City and Tulsa areas. The Community Banks segment consists of banking locations in communities throughout Oklahoma. The Pegasus Bank segment consists of banking locations in the Dallas metropolitan area. The Other Financial Services segment refers to specialty product business units, including guaranteed small business lending, residential mortgage lending, trust services, securities brokerage, electronic banking, and insurance. The Executive Operations and Support segment represents executive management, operational support, and corporate
About Virginia National Bankshares
Virginia National Bankshares Corp. is a bank holding company engaged in the provision of banking and related financial services. It operates through the following segments: Bank, VNB Trust and Estate Services, Sturman Wealth Advisors, and Masonry Capital. The Bank segment includes making loans, taking deposits, and offering related services to individuals, businesses, and charitable organizations. The VNB Trust and Estate Services segment consists of corporate trustee services, trust and estate administration, IRA administration and custody services, and in-house investment management services. The Sturman Wealth Advisors segment offers wealth and investment advisory services. The Masonry Capital segment refers to the investment management services for separately managed accounts and a private investment fund. The company was founded in 1998 and is headquartered in Charlottesville, VA.
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