Contrasting Standard Chartered (OTCMKTS:SCBFF) & First Bancorp (NASDAQ:FNLC)

Standard Chartered (OTCMKTS:SCBFF) and First Bancorp (NASDAQ:FNLC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Standard Chartered and First Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	9.26%	8.01%	0.47%
First Bancorp	20.55%	12.69%	1.02%

Earnings & Valuation

This table compares Standard Chartered and First Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$37.48 billion	0.61	$3.47 billion	$1.06	8.08
First Bancorp	$143.61 million	1.89	$29.52 million	$2.66	9.19

Standard Chartered has higher revenue and earnings than First Bancorp. Standard Chartered 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

Standard Chartered pays an annual dividend of $0.42 per share and has a dividend yield of 4.9%. First Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 5.7%. Standard Chartered pays out 39.6% of its earnings in the form of a dividend. First Bancorp pays out 52.6% 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 has raised its dividend for 4 consecutive years. First Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

40.4% of First Bancorp shares are held by institutional investors. 6.0% of First Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Standard Chartered and First Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	1	1	0	0	1.50
First Bancorp	0	0	0	0	N/A

Standard Chartered currently has a consensus target price of $930.00, indicating a potential upside of 10,751.81%. Given Standard Chartered’s higher possible upside, research analysts plainly believe Standard Chartered is more favorable than First Bancorp.

Risk and Volatility

Standard Chartered has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Summary

First Bancorp beats Standard Chartered on 10 of the 15 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

About First Bancorp

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.