First Bancorp (NASDAQ:FNLC) and First United (NASDAQ:FUNC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares First Bancorp and First United’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Bancorp||$83.14 million||3.58||$23.54 million||N/A||N/A|
|First United||$61.21 million||1.99||$5.26 million||N/A||N/A|
Institutional and Insider Ownership
33.4% of First Bancorp shares are owned by institutional investors. Comparatively, 34.8% of First United shares are owned by institutional investors. 7.2% of First Bancorp shares are owned by insiders. Comparatively, 4.2% of First United shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
First Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 4.2%. First United pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. First Bancorp has raised its dividend for 5 consecutive years. First Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations and price targets for First Bancorp and First United, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares First Bancorp and First United’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
First Bancorp has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, First United has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
First Bancorp beats First United on 10 of the 12 factors compared between the two stocks.
About First Bancorp
The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individual and corporate customers. The company offers various deposit products, including demand, NOW, savings, money market, and certificates of deposit accounts. It also provides commercial loan products, such as mortgage loans to finance investments in real property comprising multi-family residential, commercial/retail, office, industrial, hotel, educational, and other specific or mixed use properties; loans to finance construction in owner- and non-owner occupied commercial real estate properties; and revolving and term loan obligations to business and corporate enterprises for the purpose of financing working capital or capital investment. In addition, the company offers municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes; residential term loans that include amortizing home mortgages and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which are amortizing loans to individuals collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes. Further, it provides private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities. The First Bancorp, Inc. operates through 16 full-service banking offices in Lincoln, Knox, Hancock, Washington, and Penobscot counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.
About First United
First United Corporation operates as the holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; indirect and direct auto loans; and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit, and night depository facilities. It operates 24 banking offices, 1 call center, and 26 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, and Monongalia counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.
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