Head-To-Head Review: First Bancorp (NASDAQ:FNLC) versus BancFirst (NASDAQ:BANF)

BancFirst (NASDAQ:BANF) and First Bancorp (NASDAQ:FNLC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Earnings and Valuation

This table compares BancFirst and First Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BancFirst	$809.34 million	3.48	$212.46 million	$6.12	13.94
First Bancorp	$143.61 million	1.83	$29.52 million	$2.48	9.49

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

Institutional & Insider Ownership

51.7% of BancFirst shares are held by institutional investors. Comparatively, 40.4% of First Bancorp shares are held by institutional investors. 33.9% of BancFirst shares are held by company insiders. Comparatively, 6.0% of First Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

BancFirst has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Dividends

BancFirst pays an annual dividend of $1.72 per share and has a dividend yield of 2.0%. First Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 5.9%. BancFirst pays out 28.1% of its earnings in the form of a dividend. First Bancorp pays out 56.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BancFirst has raised its dividend for 30 consecutive years and First Bancorp has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BancFirst and First Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BancFirst	1	1	0	0	1.50
First Bancorp	0	0	0	0	N/A

BancFirst presently has a consensus target price of $85.50, indicating a potential upside of 0.19%. Given BancFirst’s higher probable upside, equities research analysts clearly believe BancFirst is more favorable than First Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BancFirst	24.65%	14.62%	1.67%
First Bancorp	18.41%	11.68%	0.94%

Summary

BancFirst beats First Bancorp on 14 of the 15 factors compared between the two stocks.

About BancFirst

BancFirst Corporation operates as the bank holding company for BancFirst that provides a range of commercial banking services to retail customers, and small to medium-sized businesses. The company operates through BancFirst Metropolitan Banks, BancFirst Community Banks, Pegasus, Worthington, and Other Financial Services segments. It offers checking accounts, negotiable order of withdrawal accounts, savings accounts, money market accounts, sweep accounts, club accounts, individual retirement accounts, and certificates of deposit, as well as overdraft protection and auto draft services. The company also provides commercial and agricultural non-real estate loans for working capital, facilities acquisition or expansion, purchase of equipment, and other needs; lending services that include private banking, energy, commercial and residential real estate, and commercial and industrial loans; and loans to finance purchases of consumer goods, such as automobiles, boats, household goods, vacations, and education. In addition, it engages in the investment management and administration of trusts for individuals, corporations, and employee benefit plans, as well as bond trustee and paying agent business for various Oklahoma municipalities and governmental entities; and provision of item processing, research, and other correspondent banking services to financial institutions and governmental units. Further, the company provides insurance agency services; depository and funds transfer, collection, safe deposit box, cash management, and other services. It serves customers in non-metropolitan trade centers and cities in the metropolitan statistical areas of Oklahoma. The company was formerly known as United Community Corporation and changed its name to BancFirst Corporation in November 1988. BancFirst Corporation was incorporated in 1984 and is headquartered in Oklahoma City, Oklahoma.

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 individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington 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.