Critical Analysis: BNCCORP (OTCMKTS:BNCC) & Sterling Bancorp (OTCMKTS:STL)

BNCCORP (OTCMKTS:BNCC) and Sterling Bancorp (NYSE:STL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares BNCCORP and Sterling Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BNCCORP 17.92% 16.50% 1.55%
Sterling Bancorp 22.93% 6.30% 0.90%

Analyst Ratings

This is a summary of recent recommendations for BNCCORP and Sterling Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BNCCORP 0 0 0 0 N/A
Sterling Bancorp 0 1 5 0 2.83

Sterling Bancorp has a consensus target price of $18.10, suggesting a potential upside of 60.89%. Given Sterling Bancorp’s higher probable upside, analysts plainly believe Sterling Bancorp is more favorable than BNCCORP.

Earnings and Valuation

This table compares BNCCORP and Sterling Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BNCCORP $66.95 million 1.55 $10.23 million N/A N/A
Sterling Bancorp $1.33 billion 1.64 $427.04 million $2.07 5.43

Sterling Bancorp has higher revenue and earnings than BNCCORP.

Institutional and Insider Ownership

83.5% of Sterling Bancorp shares are held by institutional investors. 28.4% of BNCCORP shares are held by insiders. Comparatively, 1.0% of Sterling Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

BNCCORP has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Sterling Bancorp has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Summary

Sterling Bancorp beats BNCCORP on 9 of the 12 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. It 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. The company 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, it offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory; and professional services, such as tax, accounting, payroll, and business planning. The company offers community banking and wealth management services through 15 locations in Arizona, Minnesota, and North Dakota; and mortgage banking services through 13 locations in Arizona, Minnesota, North Dakota, Illinois, Kansas, and Missouri. BNCCORP, Inc. was founded in 1987 and is headquartered in Bismarck, North Dakota.

About Sterling Bancorp

Sterling Bancorp operates as the bank holding company for Sterling National Bank that provides various banking products and services to commercial, consumer, and municipal clients in the United States. The company accepts deposit products, including checking, savings, money market, time, and interest and non-interest bearing demand deposits, as well as certificates of deposit and mortgage escrow funds. It originates various loans that comprise residential and commercial mortgage loans; commercial and industrial, asset-based, payroll finance, warehouse, factored receivables, equipment finance, public sector, and commercial real estate and multi-family loans; consumer loans, such as homeowner loans, home equity lines of credit, new and used automobile loans, and personal unsecured loans; and acquisition, development, and construction loans. In addition, the company engages in the third-party provider to sell mutual funds and annuities; and provision of annuity and wealth management products. As of December 31, 2018, it operated 106 full-service retail and commercial financial centers, which comprise 24 offices are located in Nassau County, 22 in Suffolk County, 14 in Queens County, 12 in Westchester County, 11 in Kings County, 8 in Rockland County, 6 in Orange County, 3 in New York City, and 2 in Bronx County, as well as 1 office each in Sullivan, Ulster, and Putnam Counties in New York; and 1 office in Bergen County, New Jersey. The company was founded in 1888 and is based in Montebello, New York.

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