BancFirst (NASDAQ:BANF) versus Red River Bancshares (NASDAQ:RRBI) Head to Head Comparison

BancFirst (NASDAQ:BANF) and Red River Bancshares (NASDAQ:RRBI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Profitability

This table compares BancFirst and Red River Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BancFirst	25.50%	13.62%	1.70%
Red River Bancshares	25.74%	12.46%	1.36%

Risk & Volatility

BancFirst has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Red River Bancshares has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Insider and Institutional Ownership

51.7% of BancFirst shares are owned by institutional investors. Comparatively, 27.6% of Red River Bancshares shares are owned by institutional investors. 31.7% of BancFirst shares are owned by company insiders. Comparatively, 16.6% of Red River Bancshares shares are owned 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.

Dividends

BancFirst pays an annual dividend of $1.96 per share and has a dividend yield of 1.8%. Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. BancFirst pays out 26.8% of its earnings in the form of a dividend. Red River Bancshares pays out 15.0% 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 and Red River Bancshares has raised its dividend for 3 consecutive years. BancFirst is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares BancFirst and Red River Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$960.40 million	3.86	$240.61 million	$7.30	15.12
Red River Bancshares	$169.85 million	3.53	$42.76 million	$6.68	13.66

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

Analyst Ratings

This is a summary of recent ratings for BancFirst and Red River Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	0	4	0	0	2.00
Red River Bancshares	0	3	1	0	2.25

BancFirst presently has a consensus price target of $124.00, indicating a potential upside of 12.35%. Red River Bancshares has a consensus price target of $80.50, indicating a potential downside of 11.77%. Given BancFirst’s higher probable upside, research analysts clearly believe BancFirst is more favorable than Red River Bancshares.

Summary

BancFirst beats Red River Bancshares on 13 of the 17 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 Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.