BANCORP 34 (OTCMKTS:BCTF) & Cullen/Frost Bankers (NYSE:CFR) Head-To-Head Survey

BANCORP 34 (OTCMKTS:BCTF) and Cullen/Frost Bankers (NYSE:CFR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

6.5% of BANCORP 34 shares are owned by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are owned by institutional investors. 7.4% of BANCORP 34 shares are owned by insiders. Comparatively, 1.1% of Cullen/Frost Bankers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BANCORP 34 and Cullen/Frost Bankers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BANCORP 34	$54.19 million	1.88	$7.86 million	$0.96	15.53
Cullen/Frost Bankers	$2.92 billion	3.16	$648.56 million	$10.27	14.28

Cullen/Frost Bankers has higher revenue and earnings than BANCORP 34. Cullen/Frost Bankers is trading at a lower price-to-earnings ratio than BANCORP 34, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for BANCORP 34 and Cullen/Frost Bankers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BANCORP 34	0	0	0	0	0.00
Cullen/Frost Bankers	2	5	4	1	2.33

Cullen/Frost Bankers has a consensus target price of $148.73, indicating a potential upside of 1.38%. Given Cullen/Frost Bankers’ stronger consensus rating and higher probable upside, analysts plainly believe Cullen/Frost Bankers is more favorable than BANCORP 34.

Risk & Volatility

BANCORP 34 has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares BANCORP 34 and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BANCORP 34	13.45%	4.02%	0.38%
Cullen/Frost Bankers	22.86%	15.58%	1.28%

Summary

Cullen/Frost Bankers beats BANCORP 34 on 13 of the 15 factors compared between the two stocks.

About BANCORP 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.