First Bancorp, Inc (ME) (NASDAQ:FNLC) & SR Bancorp (NASDAQ:SRBK) Head to Head Analysis

SR Bancorp (NASDAQ:SRBK) and First Bancorp, Inc (ME) (NASDAQ:FNLC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Institutional and Insider Ownership

24.7% of SR Bancorp shares are owned by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. 9.9% of SR Bancorp shares are owned by company insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

SR Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. SR Bancorp pays out 47.1% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 43.3% 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.

Volatility & Risk

SR Bancorp has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SR Bancorp and First Bancorp, Inc (ME), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	2	0	0	2.00
First Bancorp, Inc (ME)	0	0	1	0	3.00

SR Bancorp presently has a consensus target price of $19.00, indicating a potential upside of 0.40%. Given SR Bancorp’s higher possible upside, analysts clearly believe SR Bancorp is more favorable than First Bancorp, Inc (ME).

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	6.95%	1.82%	0.29%
First Bancorp, Inc (ME)	22.21%	13.70%	1.23%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$51.80 million	2.90	$3.35 million	$0.51	37.11
First Bancorp, Inc (ME)	$177.61 million	2.32	$34.39 million	$3.51	10.42

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

Summary

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

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

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.