TowneBank (NASDAQ:TOWN) versus First BanCorp. (NYSE:FBP) Critical Comparison

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Towne Bank (NASDAQ: CITYGet a rating) and First BanCorp. (New York Stock Exchange: FBPGet a rating) are both finance companies, but which is the better investment? We will compare the two companies based on their risk strength, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Insider and Institutional Ownership

92.8% of First BanCorp. the shares are held by institutional investors. 2.1% of First BanCorp. the shares are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of TowneBank and First BanCorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
TowneBank $721.41 million N / A $215.38 million $2.51 12.17
First BanCorp. $915.87 million 3.32 $281.02 million $1.50 10.79

First BanCorp. has higher revenue and profit than TowneBank. First BanCorp. trades at a lower price-to-earnings ratio than TowneBank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of TowneBank and First BanCorp.

Net margins Return on equity return on assets
TowneBank 26.07% 9.62% 1.12%
First BanCorp. 33.00% 16.29% 1.52%

Dividends

TowneBank pays an annual dividend of $0.92 per share and has a dividend yield of 3.0%. First BanCorp. pays an annual dividend of $0.48 per share and has a dividend yield of 3.0%. TowneBank pays 36.7% of its profits as a dividend. First BanCorp. pays 32.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. TowneBank has increased its dividend for 12 consecutive years and First BanCorp. increased its dividend for 2 consecutive years. TowneBank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and risk

TowneBank has a beta of 0.98, which means its stock price is 2% less volatile than the S&P 500. Compared to First BanCorp. has a beta of 1.17, which means its price is 17% more volatile than the S&P 500.

Analyst Notes

This is a breakdown of recent TowneBank and First BanCorp. ratings, provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
TowneBank 0 0 0 0 N / A
First BanCorp. 0 0 2 0 3.00

First BanCorp. has a consensus price target of $16.33, suggesting a potential upside of 0.95%. Given First BanCorp.’s possible higher upside, analysts clearly believe in First BanCorp. is more favorable than TowneBank.

Summary

First BanCorp. beats TowneBank on 11 out of 15 factors compared between the two stocks.

About TowneBank

(Get a rating)

TowneBank provides retail and commercial banking services to individuals, commercial enterprises and professionals. The Company operates through three segments: Banking, Real Estate and Insurance. It accepts various deposits, including demand deposits, savings accounts, cash savings, certificates of deposit, and individual retirement accounts. The company also offers secured and unsecured personal loans for financing automobiles, home renovations, education and personal investments. commercial loans for working capital, business expansion and the purchase of equipment and machinery; and mortgage loans, as well as loans for the acquisition, development and construction of real estate. In addition, it provides other services, such as safe deposit boxes, cash management services, direct deposit of payroll and social security checks and automatic drafts for various accounts, and online banking. , mobile and on call. In addition, the company offers documentation services to achieve tax deferral for investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement and estate planning services, as well as assistance with various investment options including alternative investments, annuities, margin accounts, convertible bonds and plans retirement and profit sharing. In addition, it provides residential real estate, relocation, property management, vacation rental, and title and settlement services; and issues residential mortgages. The company also offers life, property, accident and vehicle insurance services; and employee benefit programs, such as health, dental, vision, and disability insurance. It operates in Richmond, Virginia, the Greater Hampton Roads area in southeastern Virginia, northeastern North Carolina, Raleigh, Charlotte, Greensboro and Greenville, North Carolina. TowneBank was incorporated in 1998 and is headquartered in Portsmouth, Virginia.

About First BanCorp.

(Get a rating)

First BanCorp.  logoFirst BanCorp. operates as a bank holding company for FirstBank Puerto Rico which provides a range of financial services to retail, commercial and institutional customers. The Company operates through six segments: Business and Commercial Banking, Mortgage Banking, Personal Banking (Retail), Treasury and Investments, United States Operations and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial and construction real estate loans, floor plan financing, and cash and corporate management services. The Mortgage Banking segment is engaged in the origination, sale and management of various residential mortgage loan products and related hedging activities; and the acquisition and sale of mortgages in the secondary markets. The Consumer (Retail) Banking segment offers car, boat and personal loans; credit card; Lines of credit; deposit products including interest-bearing and non-interest-bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); leasing and insurance agency services. The Treasury and Investments segment offers financing and cash management services. The United States Operations segment provides checking, savings and money market accounts, as well as retail CDs; and residential mortgages, home equity loans, lines of credit and term and construction loans, as well as internet banking, cash management, remote data entry and transaction services automated clearing house. The Virgin Islands Operations segment is involved in consumer credit, commercial and deposit business. The company operates 64 branches in Puerto Rico, 8 branches in the US Virgin Islands and the British Virgin Islands, and 11 branches in the state of Florida. First BanCorp. was founded in 1948 and is based in Santurce, Puerto Rico.



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