Comparing Benchmark Bankshares (OTCMKTS:BMBN) & First Interstate BancSystem (NASDAQ:FIBK)

First Interstate BancSystem (NASDAQ:FIBK) and Benchmark Bankshares (OTCMKTS:BMBN) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	17.76%	8.22%	0.86%
Benchmark Bankshares	N/A	N/A	N/A

Valuation and Earnings

This table compares First Interstate BancSystem and Benchmark Bankshares’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$994.50 million	2.95	$257.50 million	$2.51	11.18
Benchmark Bankshares	N/A	N/A	N/A	N/A	N/A

First Interstate BancSystem has higher revenue and earnings than Benchmark Bankshares.

Insider & Institutional Ownership

88.7% of First Interstate BancSystem shares are held by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are held by institutional investors. 6.9% of First Interstate BancSystem shares are held by company insiders. Comparatively, 14.0% of Benchmark Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

First Interstate BancSystem has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Interstate BancSystem and Benchmark Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	0	4	2	0	2.33
Benchmark Bankshares	0	0	0	0	N/A

First Interstate BancSystem presently has a consensus target price of $33.33, indicating a potential upside of 18.79%. Given First Interstate BancSystem’s higher probable upside, equities analysts plainly believe First Interstate BancSystem is more favorable than Benchmark Bankshares.

Dividends

First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 6.7%. Benchmark Bankshares pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. First Interstate BancSystem pays out 74.9% of its earnings in the form of a dividend. First Interstate BancSystem has increased its dividend for 11 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Interstate BancSystem beats Benchmark Bankshares on 10 of the 12 factors compared between the two stocks.

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.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.