Critical Survey: BNCCORP (OTCMKTS:BNCC) & Associated Banc (NYSE:ASB)

BNCCORP (OTCMKTS:BNCC) and Associated Banc (NYSE:ASB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares BNCCORP and Associated Banc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNCCORP	$52.44 million	2.50	$7.93 million	$2.50	14.76
Associated Banc	$2.46 billion	1.84	$474.78 million	$2.77	9.84

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

Insider and Institutional Ownership

83.0% of Associated Banc shares are held by institutional investors. 28.4% of BNCCORP shares are held by insiders. Comparatively, 1.5% of Associated Banc shares are held 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.

Analyst Ratings

This is a summary of current ratings and target prices for BNCCORP and Associated Banc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNCCORP	0	0	0	0	0.00
Associated Banc	0	8	3	0	2.27

Associated Banc has a consensus price target of $29.20, suggesting a potential upside of 7.12%. Given Associated Banc’s stronger consensus rating and higher probable upside, analysts plainly believe Associated Banc is more favorable than BNCCORP.

Volatility & Risk

BNCCORP has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Associated Banc has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares BNCCORP and Associated Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BNCCORP	15.94%	8.95%	0.91%
Associated Banc	19.31%	10.25%	1.07%

Summary

Associated Banc beats BNCCORP on 11 of the 14 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. The company 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. It 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, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.

About Associated Banc

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.