Head to Head Contrast: Banner (NASDAQ:BANR) versus FFW (OTCMKTS:FFWC)

Banner (NASDAQ:BANR) and FFW (OTCMKTS:FFWC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Volatility and Risk

Banner has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, FFW has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Valuation and Earnings

This table compares Banner and FFW”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banner	$647.40 million	3.44	$168.90 million	$5.49	11.90
FFW	$32.63 million	1.60	$5.54 million	$5.32	8.98

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

Analyst Ratings

This is a summary of recent ratings and price targets for Banner and FFW, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	4	3	0	2.43
FFW	0	0	0	0	0.00

Banner currently has a consensus target price of $71.17, indicating a potential upside of 8.93%. Given Banner’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Banner is more favorable than FFW.

Dividends

Banner pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. FFW pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. Banner pays out 36.4% of its earnings in the form of a dividend. FFW pays out 23.3% 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.

Institutional & Insider Ownership

87.3% of Banner shares are held by institutional investors. 1.7% of Banner shares are held by insiders. Comparatively, 17.0% of FFW shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Banner	21.80%	10.32%	1.17%
FFW	17.68%	N/A	N/A

Summary

Banner beats FFW on 14 of the 16 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 FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.