Reviewing BancFirst (NASDAQ:BANF) & American Bank (OTCMKTS:AMBK)

BancFirst (NASDAQ:BANF) and American Bank (OTCMKTS:AMBK) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

This table compares BancFirst and American Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BancFirst	26.25%	15.58%	1.74%
American Bank	N/A	N/A	N/A

Dividends

BancFirst pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.5%. BancFirst pays out 27.1% of its earnings in the form of a dividend. BancFirst has raised its dividend for 30 consecutive years.

Earnings and Valuation

This table compares BancFirst and American Bank’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$809.34 million	3.34	$212.46 million	$6.34	12.94
American Bank	N/A	N/A	N/A	N/A	N/A

BancFirst has higher revenue and earnings than American Bank.

Risk & Volatility

BancFirst has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, American Bank has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Insider & Institutional Ownership

51.7% of BancFirst shares are held by institutional investors. 33.9% of BancFirst shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for BancFirst and American Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	1	1	0	0	1.50
American Bank	0	0	0	0	N/A

BancFirst currently has a consensus price target of $85.50, suggesting a potential upside of 4.26%. Given BancFirst’s higher probable upside, equities research analysts plainly believe BancFirst is more favorable than American Bank.

Summary

BancFirst beats American Bank on 9 of the 11 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 American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.