Head to Head Comparison: Nicolet Bankshares (NYSE:NIC) & First BanCorp. (NYSE:FBP)

First BanCorp. (NYSE:FBP) and Nicolet Bankshares (NYSE:NIC) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

97.9% of First BanCorp. shares are held by institutional investors. Comparatively, 43.1% of Nicolet Bankshares shares are held by institutional investors. 1.9% of First BanCorp. shares are held by insiders. Comparatively, 7.2% of Nicolet Bankshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First BanCorp. and Nicolet Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$987.37 million	4.27	$344.87 million	$2.37	11.65
Nicolet Bankshares	$556.52 million	6.38	$150.69 million	$9.04	18.73

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

Profitability

This table compares First BanCorp. and Nicolet Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	29.24%	18.03%	1.84%
Nicolet Bankshares	22.11%	11.71%	1.69%

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Nicolet Bankshares pays an annual dividend of $1.44 per share and has a dividend yield of 0.9%. First BanCorp. pays out 33.8% of its earnings in the form of a dividend. Nicolet Bankshares pays out 15.9% 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. First BanCorp. has raised its dividend for 6 consecutive years and Nicolet Bankshares has raised its dividend for 2 consecutive years. First BanCorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for First BanCorp. and Nicolet Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	3	5	1	2.78
Nicolet Bankshares	0	2	4	1	2.86

First BanCorp. presently has a consensus price target of $29.86, indicating a potential upside of 8.13%. Nicolet Bankshares has a consensus price target of $183.50, indicating a potential upside of 8.39%. Given Nicolet Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe Nicolet Bankshares is more favorable than First BanCorp..

Volatility and Risk

First BanCorp. has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Summary

First BanCorp. beats Nicolet Bankshares on 10 of the 17 factors compared between the two stocks.

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.

About Nicolet Bankshares

Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals in Wisconsin and Michigan. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. The company was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.