Camden National (NASDAQ:CAC) versus First Bancorp, Inc (ME) (NASDAQ:FNLC) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Bancorp, Inc (ME) and Camden National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp, Inc (ME)	0	0	1	0	3.00
Camden National	0	4	2	0	2.33

Camden National has a consensus target price of $52.25, suggesting a potential upside of 7.47%. Given Camden National’s higher probable upside, analysts clearly believe Camden National is more favorable than First Bancorp, Inc (ME).

Institutional and Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. Comparatively, 77.4% of Camden National shares are owned by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are owned by insiders. Comparatively, 2.1% of Camden National shares are owned by 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.

Earnings and Valuation

This table compares First Bancorp, Inc (ME) and Camden National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$177.61 million	1.85	$34.39 million	$3.24	9.00
Camden National	$252.65 million	3.27	$65.16 million	$4.70	10.34

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

Risk and Volatility

First Bancorp, Inc (ME) has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. First Bancorp, Inc (ME) pays out 45.7% of its earnings in the form of a dividend. Camden National pays out 35.7% 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, Inc (ME) has raised its dividend for 6 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Bancorp, Inc (ME) and Camden National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	20.34%	13.23%	1.14%
Camden National	21.32%	11.94%	1.16%

Summary

Camden National beats First Bancorp, Inc (ME) on 12 of the 17 factors compared between the two stocks.

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.

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.