BancFirst Corporation (NASDAQ: BANF) and Xenith Bankshares (NASDAQ:XBKS) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

BancFirst Corporation has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Xenith Bankshares has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BancFirst Corporation and Xenith Bankshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BancFirst Corporation 0 0 0 0 N/A
Xenith Bankshares 0 2 1 0 2.33

Xenith Bankshares has a consensus price target of $28.00, suggesting a potential downside of 10.74%. Given Xenith Bankshares’ higher probable upside, analysts plainly believe Xenith Bankshares is more favorable than BancFirst Corporation.

Dividends

BancFirst Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Xenith Bankshares does not pay a dividend. BancFirst Corporation pays out 31.8% of its earnings in the form of a dividend. Xenith Bankshares has raised its dividend for 15 consecutive years.

Insider & Institutional Ownership

17.4% of BancFirst Corporation shares are owned by institutional investors. Comparatively, 59.6% of Xenith Bankshares shares are owned by institutional investors. 45.0% of BancFirst Corporation shares are owned by company insiders. Comparatively, 31.7% of Xenith Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares BancFirst Corporation and Xenith Bankshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BancFirst Corporation $325.60 million 5.03 $70.67 million $2.64 19.47
Xenith Bankshares $103.54 million 7.04 $57.04 million $1.03 30.46

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

Profitability

This table compares BancFirst Corporation and Xenith Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BancFirst Corporation 24.35% 11.59% 1.21%
Xenith Bankshares 18.26% 5.59% 0.82%

About BancFirst Corporation

BancFirst Corporation is a financial holding company. The Company conducts its operating activities through its principal subsidiary, BancFirst (the Bank), a state-chartered bank. It has four business units, which include metropolitan banks, community banks, other financial services, and executive, operations and support. The metropolitan and community banks offer traditional banking products, such as commercial and retail lending, and a line of deposit accounts. The metropolitan banks consist of banking locations in the metropolitan Oklahoma City and Tulsa areas. The community banks consist of banking locations in communities throughout Oklahoma. Its other financial services are 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 groups represent executive management, operational support and corporate functions.

About Xenith Bankshares

Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.

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