Head-To-Head Survey: First Bancorp (NASDAQ:FBNC) versus S&T Bancorp (NASDAQ:STBA)

S&T Bancorp (NASDAQ:STBA) and First Bancorp (NASDAQ:FBNC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Institutional and Insider Ownership

65.2% of S&T Bancorp shares are held by institutional investors. Comparatively, 68.4% of First Bancorp shares are held by institutional investors. 1.2% of S&T Bancorp shares are held by company insiders. Comparatively, 2.0% of First Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares S&T Bancorp and First Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&T Bancorp	$415.61 million	4.10	$134.23 million	$3.76	12.86
First Bancorp	$549.30 million	4.60	$111.05 million	$3.22	18.98

S&T Bancorp has higher earnings, but lower revenue than First Bancorp. S&T Bancorp is trading at a lower price-to-earnings ratio than First Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

S&T Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.1%. First Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 1.6%. S&T Bancorp pays out 39.4% of its earnings in the form of a dividend. First Bancorp pays out 29.8% 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. S&T Bancorp has increased its dividend for 13 consecutive years. S&T Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and target prices for S&T Bancorp and First Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&T Bancorp	0	5	2	0	2.29
First Bancorp	1	2	2	1	2.50

S&T Bancorp presently has a consensus price target of $51.60, indicating a potential upside of 6.68%. First Bancorp has a consensus price target of $68.94, indicating a potential upside of 12.81%. Given First Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe First Bancorp is more favorable than S&T Bancorp.

Profitability

This table compares S&T Bancorp and First Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&T Bancorp	24.51%	9.74%	1.42%
First Bancorp	22.12%	11.31%	1.46%

Volatility and Risk

S&T Bancorp has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Summary

First Bancorp beats S&T Bancorp on 11 of the 17 factors compared between the two stocks.

About S&T Bancorp

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.

About First Bancorp

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses. The company accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. It also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, the company provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, it offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina.