Reviewing BNCCORP (OTCMKTS:BNCC) & First Interstate BancSystem (NASDAQ:FIBK)

BNCCORP (OTCMKTS:BNCC) and First Interstate BancSystem (NASDAQ:FIBK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

BNCCORP has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, First Interstate BancSystem has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. 28.4% of BNCCORP shares are held by insiders. Comparatively, 8.0% of First Interstate BancSystem shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for BNCCORP and First Interstate BancSystem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNCCORP	0	0	0	0	0.00
First Interstate BancSystem	2	3	3	0	2.13

First Interstate BancSystem has a consensus price target of $37.33, indicating a potential upside of 3.33%. Given First Interstate BancSystem’s stronger consensus rating and higher possible upside, analysts clearly believe First Interstate BancSystem is more favorable than BNCCORP.

Earnings & Valuation

This table compares BNCCORP and First Interstate BancSystem”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNCCORP	$57.17 million	2.10	$8.77 million	$2.59	13.11
First Interstate BancSystem	$1.41 billion	2.49	$302.10 million	$3.07	11.77

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

Profitability

This table compares BNCCORP and First Interstate BancSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BNCCORP	15.52%	8.75%	0.89%
First Interstate BancSystem	22.64%	9.13%	1.16%

Summary

First Interstate BancSystem beats BNCCORP on 12 of the 14 factors compared between the two stocks.

About BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.