Comparing First BanCorp. (FBP) and Its Rivals

First BanCorp. (NYSE:FBP) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare First BanCorp. to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Risk and Volatility

First BanCorp. has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, First BanCorp.’s peers have a beta of 0.52, indicating that their average share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

97.9% of First BanCorp. shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 1.9% of First BanCorp. 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
First BanCorp.	$1.26 billion	$344.87 million	11.08
First BanCorp. Competitors	$9.93 billion	$2.41 billion	16.77

First BanCorp.’s peers have higher revenue and earnings than First BanCorp.. First BanCorp. 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.

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. First BanCorp. pays out 33.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. First BanCorp. has raised its dividend for 6 consecutive years. First BanCorp. lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares First BanCorp. and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	28.67%	18.87%	1.92%
First BanCorp. Competitors	15.63%	9.42%	0.93%

Analyst Ratings

This is a summary of current ratings and recommmendations for First BanCorp. and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	3	4	2	2.89
First BanCorp. Competitors	7463	30185	27751	1456	2.35

First BanCorp. currently has a consensus target price of $29.86, indicating a potential upside of 13.75%. As a group, “Banks” companies have a potential upside of 16.90%. Given First BanCorp.’s peers higher possible upside, analysts clearly believe First BanCorp. has less favorable growth aspects than its peers.

Summary

First BanCorp. beats its peers on 8 of the 15 factors compared.

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.