Comparing First United (NASDAQ:FUNC) and Camden National (NASDAQ:CAC)

Camden National (NASDAQ:CAC) and First United (NASDAQ:FUNC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Camden National and First United”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camden National	$257.28 million	2.70	$43.38 million	$3.20	14.87
First United	$99.49 million	2.31	$15.06 million	$2.46	14.46

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

Volatility & Risk

Camden National has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, First United has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Dividends

Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. First United pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Camden National pays out 52.5% of its earnings in the form of a dividend. First United pays out 35.8% 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Camden National and First United, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camden National	0	2	0	0	2.00
First United	0	0	0	0	0.00

Camden National presently has a consensus price target of $41.50, suggesting a potential downside of 12.78%. Given Camden National’s stronger consensus rating and higher probable upside, equities analysts plainly believe Camden National is more favorable than First United.

Institutional and Insider Ownership

77.4% of Camden National shares are held by institutional investors. Comparatively, 33.3% of First United shares are held by institutional investors. 1.9% of Camden National shares are held by insiders. Comparatively, 7.8% of First United shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Camden National and First United’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camden National	16.47%	9.95%	0.88%
First United	14.70%	12.20%	1.07%

Summary

Camden National beats First United on 10 of the 15 factors compared between the two stocks.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

About First United

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes 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, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.