Financial Review: Comerica (CMA) & BancFirst (BANF)

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

Volatility & Risk

Comerica has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, BancFirst has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Comerica 27.28% 13.14% 1.46%
BancFirst 25.59% 13.04% 1.43%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Comerica and BancFirst, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comerica 2 10 14 0 2.46
BancFirst 0 1 0 0 2.00

Comerica currently has a consensus price target of $100.34, suggesting a potential upside of 7.67%. BancFirst has a consensus price target of $60.00, suggesting a potential downside of 1.64%. Given Comerica’s stronger consensus rating and higher probable upside, equities analysts plainly believe Comerica is more favorable than BancFirst.

Valuation & Earnings

This table compares Comerica and BancFirst’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comerica $3.29 billion 4.86 $743.00 million $4.73 19.70
BancFirst $366.13 million 5.45 $86.43 million $2.72 22.43

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

Institutional & Insider Ownership

81.3% of Comerica shares are held by institutional investors. Comparatively, 33.4% of BancFirst shares are held by institutional investors. 0.8% of Comerica shares are held by company insiders. Comparatively, 42.3% of BancFirst shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Comerica pays an annual dividend of $1.36 per share and has a dividend yield of 1.5%. BancFirst pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Comerica pays out 28.8% 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. Comerica has increased its dividend for 6 consecutive years and BancFirst has increased its dividend for 16 consecutive years. Comerica is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Comerica beats BancFirst on 13 of the 17 factors compared between the two stocks.

Comerica Company Profile

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through three segments: Business Bank, the Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, such as commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management, and loan syndication services to middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides small business banking and personal financial services, including consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers a range of consumer products comprising deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment provides products and services consisting of fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The company operates in Texas, California, and Michigan, as well as in Arizona and Florida, Canada, and Mexico. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.

BancFirst Company Profile

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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