First Interstate BancSystem (NASDAQ:FIBK) & Benchmark Bankshares (OTCMKTS:BMBN) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Benchmark Bankshares and First Interstate BancSystem, as reported by MarketBeat.com.

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

First Interstate BancSystem has a consensus target price of $33.33, indicating a potential upside of 19.69%. Given First Interstate BancSystem’s higher possible upside, analysts clearly believe First Interstate BancSystem is more favorable than Benchmark Bankshares.

Profitability

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

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

Dividends

Benchmark Bankshares pays an annual dividend of $0.84 per share and has a dividend yield of 4.3%. First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 6.7%. 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.

Volatility and Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Bankshares	N/A	N/A	N/A	N/A	N/A
First Interstate BancSystem	$994.50 million	2.94	$257.50 million	$2.51	11.13

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

Institutional and Insider Ownership

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

Summary

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

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.

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.