Comparing Camden National (NASDAQ:CAC) and BancFirst (NASDAQ:BANF)

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

Volatility and Risk

BancFirst has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Dividends

BancFirst pays an annual dividend of $2.08 per share and has a dividend yield of 1.8%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. BancFirst pays out 27.6% of its earnings in the form of a dividend. Camden National pays out 31.6% 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. BancFirst has raised its dividend for 31 consecutive years.

Earnings and Valuation

This table compares BancFirst and Camden National”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$960.40 million	4.11	$240.61 million	$7.53	15.58
Camden National	$261.73 million	3.81	$65.16 million	$5.31	11.12

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

Insider and Institutional Ownership

51.7% of BancFirst shares are held by institutional investors. Comparatively, 77.4% of Camden National shares are held by institutional investors. 31.7% of BancFirst shares are held by company insiders. Comparatively, 2.1% of Camden National shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BancFirst	25.92%	13.30%	1.71%
Camden National	24.16%	12.71%	1.30%

Analyst Ratings

This is a breakdown of recent ratings and target prices for BancFirst and Camden National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	0	4	0	0	2.00
Camden National	1	3	2	0	2.17

BancFirst currently has a consensus price target of $123.00, indicating a potential upside of 4.86%. Camden National has a consensus price target of $57.50, indicating a potential downside of 2.62%. Given BancFirst’s higher possible upside, analysts clearly believe BancFirst is more favorable than Camden National.

Summary

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

About BancFirst

BancFirst Corporation is an Oklahoma-based financial holding company that provides banking and related financial services through its BancFirst network. Founded in 1989, the company has grown through a community-banking model focused on serving individuals, businesses and local organizations. Its services include personal and business deposit accounts, loans, cash-management services and other commercial banking products. The company also offers services such as mortgage lending, trust and wealth management, and insurance through its affiliated businesses.

About Camden National

Camden National Bancorp, Inc. is a bank holding company headquartered in Camden, Maine. Its principal subsidiary, Camden National Bank, traces its roots to 1875 and provides banking and financial services to individuals, businesses and institutions. The bank offers personal and business deposit accounts, lending, mortgage and cash-management services, as well as wealth management, trust and investment services. Its service area is centered in Maine, where it operates branches and serves customers across the state.