Bancorp 34 (OTCMKTS:BCTF – Get Free Report) and First Guaranty Bancshares (NASDAQ:FGBI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Bancorp 34 and First Guaranty Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bancorp 34 | 0 | 0 | 0 | 0 | N/A |
| First Guaranty Bancshares | 0 | 1 | 0 | 0 | 2.00 |
First Guaranty Bancshares has a consensus price target of $17.00, indicating a potential upside of 41.67%. Given First Guaranty Bancshares’ higher probable upside, analysts clearly believe First Guaranty Bancshares is more favorable than Bancorp 34.
Dividends
Institutional and Insider Ownership
6.5% of Bancorp 34 shares are held by institutional investors. Comparatively, 12.3% of First Guaranty Bancshares shares are held by institutional investors. 7.4% of Bancorp 34 shares are held by insiders. Comparatively, 42.8% of First Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Bancorp 34 and First Guaranty Bancshares’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bancorp 34 | N/A | N/A | N/A | N/A | N/A |
| First Guaranty Bancshares | $147.59 million | 0.87 | $28.88 million | $2.09 | 5.74 |
First Guaranty Bancshares has higher revenue and earnings than Bancorp 34.
Risk and Volatility
Bancorp 34 has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, First Guaranty Bancshares has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Profitability
This table compares Bancorp 34 and First Guaranty Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bancorp 34 | N/A | N/A | N/A |
| First Guaranty Bancshares | 15.20% | 12.25% | 0.78% |
Summary
First Guaranty Bancshares beats Bancorp 34 on 8 of the 10 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; 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; 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 Guaranty Bancshares
First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits to consumers, small businesses, and municipalities. The company also provides loans, such as non-farm, non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, multifamily loans, construction and land development loans, agricultural loans, farmland loans, and consumer and other loans to small to medium-sized businesses and professionals, and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, automated teller machines, and online bill pay; provides additional solutions, such as merchant services, remote deposit capture, and lockbox services to business customers; and invests a portion of its assets in securities issued by the United States Government and its agencies, state and municipal obligations, corporate debt securities, mutual funds, and equity securities, as well as invests in mortgage-backed securities primarily issued or guaranteed by United States Government agencies or enterprises. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.
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