Head-To-Head Review: Burke & Herbert Financial Services (NASDAQ:BHRB) versus BNCCORP (OTCMKTS:BNCC)

Burke & Herbert Financial Services (NASDAQ:BHRB) and BNCCORP (OTCMKTS:BNCC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Burke & Herbert Financial Services and BNCCORP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burke & Herbert Financial Services	$261.95 million	3.55	$35.71 million	$2.40	25.87
BNCCORP	$52.44 million	2.03	$7.93 million	$2.25	13.36

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

Analyst Ratings

This is a summary of recent ratings and target prices for Burke & Herbert Financial Services and BNCCORP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burke & Herbert Financial Services	0	0	2	0	3.00
BNCCORP	0	0	0	0	0.00

Burke & Herbert Financial Services currently has a consensus price target of $76.00, indicating a potential upside of 22.40%. Given Burke & Herbert Financial Services’ stronger consensus rating and higher possible upside, equities analysts plainly believe Burke & Herbert Financial Services is more favorable than BNCCORP.

Profitability

This table compares Burke & Herbert Financial Services and BNCCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burke & Herbert Financial Services	8.88%	15.15%	1.35%
BNCCORP	15.15%	7.66%	0.86%

Summary

Burke & Herbert Financial Services beats BNCCORP on 10 of the 11 factors compared between the two stocks.

About Burke & Herbert Financial Services

Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.

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.