Critical Analysis: First Bancorp, Inc (ME) (FNLC) vs. Its Peers

First Bancorp, Inc (ME) (NASDAQ:FNLC) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare First Bancorp, Inc (ME) to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares First Bancorp, Inc (ME) and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	22.21%	13.70%	1.23%
First Bancorp, Inc (ME) Competitors	15.63%	9.48%	0.93%

Valuation and Earnings

This table compares First Bancorp, Inc (ME) and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
First Bancorp, Inc (ME)	$177.61 million	$34.39 million	10.36
First Bancorp, Inc (ME) Competitors	$9.93 billion	$2.41 billion	18.77

First Bancorp, Inc (ME)’s peers have higher revenue and earnings than First Bancorp, Inc (ME). First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are held by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

First Bancorp, Inc (ME) has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME)’s peers have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Bancorp, Inc (ME) and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp, Inc (ME)	0	0	1	0	3.00
First Bancorp, Inc (ME) Competitors	7458	30159	27706	1451	2.35

As a group, “Banks” companies have a potential upside of 17.32%. Given First Bancorp, Inc (ME)’s peers higher probable upside, analysts plainly believe First Bancorp, Inc (ME) has less favorable growth aspects than its peers.

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. First Bancorp, Inc (ME) pays out 43.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend. First Bancorp, Inc (ME) has raised its dividend for 6 consecutive years. First Bancorp, Inc (ME) lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

First Bancorp, Inc (ME) peers beat First Bancorp, Inc (ME) on 10 of the 15 factors compared.

About First Bancorp, Inc (ME)

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.