Signature Bank (NASDAQ:SBNY) and First BanCorp. (NYSE:FBP) Financial Survey

Signature Bank (NASDAQ:SBNY) and First BanCorp. (NYSE:FBP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Signature Bank and First BanCorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	36.03%	16.76%	1.16%
First BanCorp.	27.51%	21.15%	1.52%

Analyst Recommendations

This is a summary of recent ratings for Signature Bank and First BanCorp., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	5	5	0	2.50
First BanCorp.	0	1	0	0	2.00

Signature Bank presently has a consensus target price of $166.43, suggesting a potential upside of 415,971.43%. First BanCorp. has a consensus target price of $14.75, suggesting a potential upside of 8.06%. Given Signature Bank’s stronger consensus rating and higher probable upside, equities analysts clearly believe Signature Bank is more favorable than First BanCorp..

Dividends

Signature Bank pays an annual dividend of $1.26 per share and has a dividend yield of 3,150.0%. First BanCorp. pays an annual dividend of $0.56 per share and has a dividend yield of 4.1%. Signature Bank pays out 6.1% of its earnings in the form of a dividend. First BanCorp. pays out 35.4% 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. Signature Bank has raised its dividend for 1 consecutive years and First BanCorp. has raised its dividend for 3 consecutive years. Signature Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Signature Bank has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares Signature Bank and First BanCorp.’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$3.71 billion	0.00	$1.34 billion	$20.78	0.00
First BanCorp.	$918.39 million	2.65	$305.07 million	$1.58	8.64

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

Institutional & Insider Ownership

7.3% of Signature Bank shares are owned by institutional investors. Comparatively, 91.2% of First BanCorp. shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by insiders. Comparatively, 2.1% of First BanCorp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Signature Bank beats First BanCorp. on 10 of the 17 factors compared between the two stocks.

About Signature Bank

Signature Bank provides digital assets banking business and comprises of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; acquisition and sale of mortgages in the secondary markets; and purchase of mortgage loans from other local banks and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.