Head to Head Analysis: First BanCorp. (NYSE:FBP) and Pathfinder Bancorp (NASDAQ:PBHC)

Pathfinder Bancorp (NASDAQ:PBHC) and First BanCorp. (NYSE:FBP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Pathfinder Bancorp and First BanCorp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Bancorp	0	0	0	0	0.00
First BanCorp.	0	2	3	0	2.60

First BanCorp. has a consensus target price of $21.40, indicating a potential downside of 0.88%. Given First BanCorp.’s stronger consensus rating and higher probable upside, analysts clearly believe First BanCorp. is more favorable than Pathfinder Bancorp.

Earnings & Valuation

This table compares Pathfinder Bancorp and First BanCorp.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$72.85 million	1.15	$9.29 million	$0.32	55.69
First BanCorp.	$889.54 million	3.98	$302.86 million	$1.81	11.93

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

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. First BanCorp. pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. Pathfinder Bancorp pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First BanCorp. pays out 35.4% of its earnings in the form of a dividend. First BanCorp. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Pathfinder Bancorp has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

26.7% of Pathfinder Bancorp shares are owned by institutional investors. Comparatively, 97.9% of First BanCorp. shares are owned by institutional investors. 22.4% of Pathfinder Bancorp shares are owned by company insiders. Comparatively, 2.5% of First BanCorp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	2.42%	1.65%	0.14%
First BanCorp.	24.94%	19.91%	1.63%

Summary

First BanCorp. beats Pathfinder Bancorp on 14 of the 16 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.