Civista Bancshares (NASDAQ: CIVB) and BNC Bancorp (NASDAQ:BNCN) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Civista Bancshares and BNC Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Civista Bancshares 0 2 3 0 2.60
BNC Bancorp 0 3 1 0 2.25

Civista Bancshares presently has a consensus price target of $22.06, indicating a potential upside of 8.04%. BNC Bancorp has a consensus price target of $33.88, indicating a potential downside of 3.63%. Given Civista Bancshares’ stronger consensus rating and higher possible upside, equities analysts clearly believe Civista Bancshares is more favorable than BNC Bancorp.

Institutional and Insider Ownership

42.3% of Civista Bancshares shares are owned by institutional investors. Comparatively, 62.6% of BNC Bancorp shares are owned by institutional investors. 4.8% of Civista Bancshares shares are owned by insiders. Comparatively, 6.2% of BNC Bancorp shares are owned by 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.

Risk and Volatility

Civista Bancshares has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, BNC Bancorp has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Dividends

Civista Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. BNC Bancorp pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. Civista Bancshares pays out 17.6% of its earnings in the form of a dividend. BNC Bancorp pays out 3.8% 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.

Profitability

This table compares Civista Bancshares and BNC Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Civista Bancshares 21.97% 11.19% 1.08%
BNC Bancorp 19.39% 6.37% 0.77%

Earnings and Valuation

This table compares Civista Bancshares and BNC Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Civista Bancshares $67.38 million 3.08 $13.83 million $1.36 15.01
BNC Bancorp N/A N/A N/A $1.32 26.63

Civista Bancshares has higher revenue and earnings than BNC Bancorp. Civista Bancshares is trading at a lower price-to-earnings ratio than BNC Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Civista Bancshares beats BNC Bancorp on 9 of the 13 factors compared between the two stocks.

About Civista Bancshares

Civista Bancshares, Inc. is a financial holding company. The Company, through the subsidiary bank, Civista Bank, is primarily engaged in the business of community banking. Civista Bank, located in Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Madison, Montgomery, Summit, Huron, Ottawa and Richland Counties, Ohio, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services. The Company’s loan portfolio consists of commercial and agriculture, commercial real estate-owner occupied, commercial real estate non-owner occupied, residential real estate, real estate construction, consumer and other. Its securities are classified as available-for-sale (AFS) securities. Its deposits include non-interest-bearing demand deposits; interest-bearing demand deposits; savings account, including money market deposit accounts, and certificates of deposit, including individual retirement accounts (IRAs).

About BNC Bancorp

BNC Bancorp is a one-bank holding company for Bank of North Carolina (the Bank). The Bank is a full service commercial bank, which provides a range of banking services tailored to the particular banking needs of the communities it serves. It is engaged in the business of attracting deposits from the general public and using those deposits, together with other funding from its lines of credit, to make commercial and consumer loans. It provides banking services to individuals and small to medium-sized local businesses. It also offers a range of banking services, including traditional products, such as checking and savings accounts. Its other banking services include Mortgage Lending, Small Business Administration Lending, Wealth Management Services and Insurance Services. It offers an array of residential mortgage products, including long-term fixed rate and variable rate loans. Its Wealth Management Services include financial planning, wealth management, and trust and estate planning.

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