Financial Comparison: First Bancorp (FBP) and First Bank (FRBA)

First Bancorp (NASDAQ: FRBA) and First Bank (NASDAQ:FRBA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Risk and Volatility

First Bancorp has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, First Bank has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Dividends

First Bank pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. First Bancorp does not pay a dividend. First Bank pays out 16.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

88.5% of First Bancorp shares are owned by institutional investors. Comparatively, 50.2% of First Bank shares are owned by institutional investors. 21.1% of First Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares First Bancorp and First Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Bancorp 11.06% 6.36% 0.95%
First Bank 16.95% N/A N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for First Bancorp and First Bank, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bancorp 0 1 4 0 2.80
First Bank 0 0 1 0 3.00

First Bancorp currently has a consensus price target of $8.50, indicating a potential downside of 0.47%. First Bank has a consensus price target of $15.00, indicating a potential upside of 10.70%. Given First Bank’s stronger consensus rating and higher possible upside, analysts clearly believe First Bank is more favorable than First Bancorp.

Valuation and Earnings

This table compares First Bancorp and First Bank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bancorp $650.81 million 2.85 $66.95 million $0.50 17.08
First Bank $53.31 million 4.43 $6.99 million $0.72 18.82

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

Summary

First Bancorp beats First Bank on 10 of the 16 factors compared between the two stocks.

First Bancorp Company Profile

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to retail, commercial, and institutional clients. It operates through six segments: Commercial and Corporate Banking, Consumer (Retail) Banking, Mortgage Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial real estate and construction loans, floor plan financing, and cash and business management services, as well as investment banking services. The Consumer (Retail) Banking segment provides auto, boat, and personal loans; credit cards; lines of credit; and deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs), as well as engages in the finance leasing and insurance activities. The Mortgage Banking segment is involved in the origination, sale, and servicing of various residential mortgage loan products and related hedging activities; and acquisition and sale of mortgages in the secondary markets. The Treasury and Investments segment engages in the treasury and investment management activities, such as funding and liquidity management. The United States Operations segment offers checking, savings, and money market accounts; and residential mortgages, home equity loans, lines of credit, and automobile loans, as well as retail CDs, Internet banking services, cash management, remote data capture, automated clearing house transactions, and term loans. The Virgin Islands Operations segment is involved in the consumer, commercial lending, and deposit-taking activities. As of December 31, 2017, the company operated 45 branches in Puerto Rico, 11 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. The company was founded in 1948 and is headquartered in Santurce, Puerto Rico.

First Bank Company Profile

First Bank provides various banking products and services to individuals, businesses, and governmental entities. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer loans, which consist of auto, personal, and traditional installment loans, as well as other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; and cash management services. As of December 31, 2017, it operated 14 full-service branches in Cranbury, Denville, Ewing, Flemington, Hamilton, Lawrence, Randolph, Somerset, and Williamstown, New Jersey; and Doylestown, Bensalem, Warminster, Levittown, and Trevose, Pennsylvania. First Bank was founded in 2007 and is headquartered in Hamilton, New Jersey.

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