Contrasting First Bancorp (NASDAQ:FNLC) and NBT Bancorp (NASDAQ:NBTB)

First Bancorp (NASDAQ:FNLC) and NBT Bancorp (NASDAQ:NBTB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp	16.37%	10.90%	0.88%
NBT Bancorp	17.84%	9.39%	1.02%

Insider and Institutional Ownership

40.4% of First Bancorp shares are held by institutional investors. Comparatively, 58.5% of NBT Bancorp shares are held by institutional investors. 6.0% of First Bancorp shares are held by insiders. Comparatively, 3.3% of NBT Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

First Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 5.6%. NBT Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. First Bancorp pays out 59.5% of its earnings in the form of a dividend. NBT Bancorp pays out 45.9% 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. NBT Bancorp has increased its dividend for 12 consecutive years.

Analyst Ratings

This is a summary of recent ratings for First Bancorp and NBT Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	0	0	0	0.00
NBT Bancorp	0	2	2	1	2.80

NBT Bancorp has a consensus price target of $51.75, indicating a potential upside of 7.70%. Given NBT Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe NBT Bancorp is more favorable than First Bancorp.

Valuation & Earnings

This table compares First Bancorp and NBT Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$165.19 million	1.74	$27.05 million	$2.42	10.63
NBT Bancorp	$788.49 million	2.88	$140.64 million	$2.96	16.23

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

Volatility and Risk

First Bancorp has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Summary

NBT Bancorp beats First Bancorp on 14 of the 18 factors compared between the two stocks.

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.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.