Comparing California Business Bank (OTCMKTS:CABB) and BancFirst (NASDAQ:BANF)

California Business Bank (OTCMKTS:CABB) 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 earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares California Business Bank and BancFirst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Business Bank	N/A	N/A	N/A
BancFirst	24.05%	13.90%	1.66%

Valuation & Earnings

This table compares California Business Bank and BancFirst”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Business Bank	N/A	N/A	N/A	N/A	N/A
BancFirst	$908.71 million	4.72	$216.35 million	$6.61	19.50

BancFirst has higher revenue and earnings than California Business Bank.

Volatility & Risk

California Business Bank has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, BancFirst has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for California Business Bank and BancFirst, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Business Bank	0	0	0	0	0.00
BancFirst	1	2	0	0	1.67

BancFirst has a consensus price target of $113.33, suggesting a potential downside of 12.09%. Given BancFirst’s stronger consensus rating and higher possible upside, analysts clearly believe BancFirst is more favorable than California Business Bank.

Institutional & Insider Ownership

51.7% of BancFirst shares are owned by institutional investors. 32.4% of BancFirst shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

BancFirst beats California Business Bank on 9 of the 9 factors compared between the two stocks.

About California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.

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.