Head-To-Head Review: BNCCORP (OTCMKTS:BNCC) versus First Financial Corporation Indiana (NASDAQ:THFF)

First Financial Corporation Indiana (NASDAQ:THFF) and BNCCORP (OTCMKTS:BNCC) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Financial Corporation Indiana and BNCCORP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Corporation Indiana	0	3	1	0	2.25
BNCCORP	0	0	0	0	0.00

First Financial Corporation Indiana currently has a consensus target price of $62.00, indicating a potential upside of 0.16%. Given First Financial Corporation Indiana’s stronger consensus rating and higher possible upside, research analysts plainly believe First Financial Corporation Indiana is more favorable than BNCCORP.

Earnings & Valuation

This table compares First Financial Corporation Indiana and BNCCORP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Corporation Indiana	$347.56 million	2.12	$79.21 million	$6.68	9.27
BNCCORP	$57.17 million	2.24	$8.77 million	$2.48	14.52

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

Profitability

This table compares First Financial Corporation Indiana and BNCCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Corporation Indiana	22.79%	13.02%	1.40%
BNCCORP	15.34%	8.73%	0.90%

Volatility & Risk

First Financial Corporation Indiana has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

72.7% of First Financial Corporation Indiana shares are held by institutional investors. 5.0% of First Financial Corporation Indiana shares are held by company insiders. Comparatively, 28.4% of BNCCORP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

First Financial Corporation Indiana beats BNCCORP on 11 of the 14 factors compared between the two stocks.

About First Financial Corporation Indiana

First Financial Corporation, through its subsidiaries, provides various financial services. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits. It also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and lines, secured loans, and cash/CD secured and unsecured loans. In addition, the company offers lease financing, trust account, depositor, and insurance services. The company was founded in 1834 and is headquartered in Terre Haute, Indiana.

About BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.