First Capital (NASDAQ:FCAP) vs. Banner (NASDAQ:BANR) Financial Contrast

Banner (NASDAQ:BANR) and First Capital (NASDAQ:FCAP) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Banner and First Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banner	23.55%	10.72%	1.27%
First Capital	26.79%	13.39%	1.45%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Banner and First Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	3	3	0	2.50
First Capital	0	0	2	0	3.00

Banner currently has a consensus price target of $74.50, indicating a potential upside of 7.92%. Given Banner’s higher probable upside, analysts clearly believe Banner is more favorable than First Capital.

Earnings & Valuation

This table compares Banner and First Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banner	$877.77 million	2.67	$195.38 million	$6.06	11.39
First Capital	$65.31 million	3.08	$16.37 million	$5.53	10.90

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

Dividends

Banner pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. First Capital pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. Banner pays out 34.3% of its earnings in the form of a dividend. First Capital pays out 23.1% 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. First Capital has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

87.3% of Banner shares are owned by institutional investors. Comparatively, 11.7% of First Capital shares are owned by institutional investors. 1.4% of Banner shares are owned by company insiders. Comparatively, 4.1% of First Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Banner has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Summary

Banner beats First Capital on 9 of the 17 factors compared between the two stocks.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.