Analyzing DNB Financial Corp Common Stock (DNBF) and BancFirst (BANF)

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DNB Financial Corp Common Stock (NASDAQ: BANF) and BancFirst (NASDAQ:BANF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Volatility & Risk

DNB Financial Corp Common Stock has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, BancFirst has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for DNB Financial Corp Common Stock and BancFirst, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DNB Financial Corp Common Stock 0 0 0 0 N/A
BancFirst 0 1 0 0 2.00

BancFirst has a consensus price target of $60.00, indicating a potential downside of 5.51%. Given BancFirst’s higher possible upside, analysts clearly believe BancFirst is more favorable than DNB Financial Corp Common Stock.

Profitability

This table compares DNB Financial Corp Common Stock and BancFirst’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DNB Financial Corp Common Stock 15.92% 9.42% 0.89%
BancFirst 25.59% 13.04% 1.43%

Dividends

DNB Financial Corp Common Stock pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. BancFirst pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. DNB Financial Corp Common Stock pays out 12.3% of its earnings in the form of a dividend. BancFirst pays out 30.9% 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 16 consecutive years. BancFirst is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares DNB Financial Corp Common Stock and BancFirst’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DNB Financial Corp Common Stock $48.40 million 3.12 $7.94 million $2.28 15.35
BancFirst $366.13 million 5.68 $86.43 million $2.72 23.35

BancFirst has higher revenue and earnings than DNB Financial Corp Common Stock. DNB Financial Corp Common Stock is trading at a lower price-to-earnings ratio than BancFirst, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.1% of DNB Financial Corp Common Stock shares are owned by institutional investors. Comparatively, 33.4% of BancFirst shares are owned by institutional investors. 13.5% of DNB Financial Corp Common Stock shares are owned by insiders. Comparatively, 42.3% of BancFirst shares are owned by 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

BancFirst beats DNB Financial Corp Common Stock on 14 of the 15 factors compared between the two stocks.

About DNB Financial Corp Common Stock

DNB Financial Corporation operates as the bank holding company for DNB First, National Association that provides a range of commercial banking products and services to individuals and small to medium sized businesses. The company offers deposit products, including money market, savings, demand, and NOW accounts; and time deposits, as well as certificates of deposit, including IRAs and brokered deposits. It also provides loan products comprising fixed and variable rate loans; funds for the purchase of business property or ventures, working capital lines, small business administration loans, and lease financing for equipment and for various other purposes; and home equity and home mortgages, as well as term loans for the purchase of consumer goods. In addition, it offers cash management, remote capture, Internet banking, letters of credit, and other lending services, as well as commercial sweep accounts; and various investment and insurance products, such as fixed and variable annuities, 401(k) plans and rollovers, stocks, self-directed and managed IRAs, bonds, mutual funds, brokerage, long term care insurance, 529 college savings plans, life insurance, separately managed investment accounts, disability insurance, and self-employed pension plans. Further, the company provides wealth management and trust services to individuals, businesses, and non-profit organizations; investment and fiduciary services, such as investment management, investment advisory, estate settlement, client bill paying, custody, financial planning, corporate trustee/trust administration, and power of attorney and guardian of the estate capacities; and safekeeping and other depository services, as well as securities brokerage and ATM services. It operates through 15 community offices located in Chester, Delaware, and Philadelphia counties, Pennsylvania. The company was founded in 1860 and is based in Downingtown, Pennsylvania.

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. It operates through Metropolitan Banks, Community Banks, and Other Financial Services segments. The company 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. It also provides commercial, financial, and other loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; construction, farmland, one-to-four family residence, multifamily residential property, and commercial real estate loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, the company 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 for financial institutions and governmental units. Further, it is involved in real estate investment and insurance agency services; and providing funds transfer, collection, safe deposit box, cash management, retail brokerage, and other services for individual and corporate customers. The company serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. It operates through 107 banking locations serving 58 communities in 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 based in Oklahoma City, Oklahoma.

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