Contrasting BancFirst (NASDAQ:BANF) & Mission Valley Bancorp (OTCMKTS:MVLY)

BancFirst (NASDAQ:BANF) and Mission Valley Bancorp (OTCMKTS:MVLY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares BancFirst and Mission Valley Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$200.14 million	18.41	$240.61 million	$7.12	15.52
Mission Valley Bancorp	N/A	N/A	$8.00 million	$2.39	7.64

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

Risk & Volatility

BancFirst has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Mission Valley Bancorp has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for BancFirst and Mission Valley Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	0	3	1	0	2.25
Mission Valley Bancorp	0	0	0	0	0.00

BancFirst presently has a consensus target price of $129.50, suggesting a potential upside of 17.16%. Given BancFirst’s stronger consensus rating and higher probable upside, equities analysts clearly believe BancFirst is more favorable than Mission Valley Bancorp.

Profitability

This table compares BancFirst and Mission Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BancFirst	25.13%	13.93%	1.71%
Mission Valley Bancorp	N/A	N/A	N/A

Institutional and Insider Ownership

51.7% of BancFirst shares are held by institutional investors. Comparatively, 5.7% of Mission Valley Bancorp shares are held by institutional investors. 32.4% of BancFirst shares are held by company 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.

Dividends

BancFirst pays an annual dividend of $1.96 per share and has a dividend yield of 1.8%. Mission Valley Bancorp pays an annual dividend of $0.15 per share and has a dividend yield of 0.8%. BancFirst pays out 27.5% of its earnings in the form of a dividend. Mission Valley Bancorp pays out 6.3% 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 31 consecutive years. BancFirst is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BancFirst beats Mission Valley Bancorp on 15 of the 16 factors compared between the two stocks.

About BancFirst

BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. The company operates through BancFirst Metropolitan Banks, BancFirst Community Banks, Pegasus, Worthington, and Other Financial Services segments. It offers checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts, and certificates of deposit, as well as overdraft protection and auto draft services. The company also provides commercial and agricultural non-real estate loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; lending services that include private banking, energy, commercial and residential real estate, and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, it engages in the investment management and administration of trusts for individuals, corporations, and employee benefit plans, as well as bond trustee and paying agent business for various Oklahoma municipalities and governmental entities; and provision of item processing, research, and other correspondent banking services to financial institutions and governmental units. Further, the company provides insurance agency services; depository and funds transfer, collection, safe deposit box, cash management, and other services. It serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in November 1988. BancFirst Corporation was incorporated in 1984 and is headquartered in Oklahoma City, Oklahoma.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.