Reviewing BancFirst (NASDAQ:BANF) and First of Long Island (NASDAQ:FLIC)

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

Dividends

BancFirst pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 8.9%. BancFirst pays out 28.1% of its earnings in the form of a dividend. First of Long Island pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BancFirst has raised its dividend for 30 consecutive years.

Institutional and Insider Ownership

51.7% of BancFirst shares are owned by institutional investors. Comparatively, 48.3% of First of Long Island shares are owned by institutional investors. 33.9% of BancFirst shares are owned by company insiders. Comparatively, 6.3% of First of Long Island shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares BancFirst and First of Long Island’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BancFirst	24.65%	14.62%	1.67%
First of Long Island	14.14%	6.54%	0.57%

Earnings and Valuation

This table compares BancFirst and First of Long Island’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$809.34 million	3.38	$212.46 million	$6.12	13.55
First of Long Island	$91.25 million	2.33	$26.24 million	$1.08	8.75

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

Analyst Ratings

This is a breakdown of current recommendations for BancFirst and First of Long Island, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	1	1	0	0	1.50
First of Long Island	0	0	0	0	N/A

BancFirst currently has a consensus target price of $85.50, indicating a potential upside of 3.14%. Given BancFirst’s higher probable upside, analysts clearly believe BancFirst is more favorable than First of Long Island.

Volatility and Risk

BancFirst has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, First of Long Island has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Summary

BancFirst beats First of Long Island on 14 of the 15 factors compared between the two stocks.

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. The company operates through BancFirst Metropolitan Banks, BancFirst Community Banks, Pegasus, Worthington, and Other Financial Services segments. It 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. The company also provides commercial and agricultural non-real estate loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; lending services that include private banking, energy, commercial and residential real estate, and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, it 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 to financial institutions and governmental units. Further, the company provides insurance agency services; depository and funds transfer, collection, safe deposit box, cash management, and other services. It serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of 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 headquartered in Oklahoma City, Oklahoma.

About First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.