Head-To-Head Survey: First BanCorp. (NYSE:FBP) vs. Fifth Third Bancorp (NASDAQ:FITB)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for First BanCorp. and Fifth Third Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	1	1	0	2.50
Fifth Third Bancorp	0	8	5	0	2.38

First BanCorp. presently has a consensus price target of $17.50, indicating a potential upside of 5.45%. Fifth Third Bancorp has a consensus price target of $35.63, indicating a potential upside of 2.90%. Given First BanCorp.’s stronger consensus rating and higher possible upside, research analysts clearly believe First BanCorp. is more favorable than Fifth Third Bancorp.

Institutional and Insider Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 83.8% of Fifth Third Bancorp shares are owned by institutional investors. 2.4% of First BanCorp. shares are owned by company insiders. Comparatively, 0.5% of Fifth Third Bancorp shares are owned by company 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.

Valuation & Earnings

This table compares First BanCorp. and Fifth Third Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.16 billion	2.43	$302.86 million	$1.70	9.76
Fifth Third Bancorp	$12.64 billion	1.87	$2.35 billion	$3.23	10.72

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

Dividends

First BanCorp. pays an annual dividend of $0.64 per share and has a dividend yield of 3.9%. Fifth Third Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 4.0%. First BanCorp. pays out 37.6% of its earnings in the form of a dividend. Fifth Third Bancorp 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. has raised its dividend for 4 consecutive years and Fifth Third Bancorp has raised its dividend for 13 consecutive years. Fifth Third Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

First BanCorp. has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Fifth Third Bancorp has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	26.19%	21.62%	1.60%
Fifth Third Bancorp	18.58%	16.25%	1.22%

Summary

First BanCorp. beats Fifth Third Bancorp on 9 of the 17 factors compared between the two stocks.

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; hedging activities; and purchase of mortgage loans from branch 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, term and construction loan, 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.

About Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. The Commercial Banking segment offers credit intermediation, cash management, and financial services; lending and depository products; and cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing, and syndicated finance for business, government, and professional customers. The Consumer and Small Banking segment provides a range of deposit and loan products to individuals and small businesses; home equity loans and lines of credit; credit cards; and cash management services. This segment also engages in the residential mortgage that include origination, retention and servicing of residential mortgage loans, sales and securitizations of loans, and hedging activities; indirect lending, including extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers, and marine dealers; and home improvement and solar energy installation loans through contractors and installers. The Wealth & Asset Management segment provides various wealth management services for individuals, companies, and not-for-profit organizations. It offers retail brokerage services to individual clients; and broker dealer services to the institutional marketplace. This segment also provides wealth planning, investment management, banking, insurance, and trust and estate services; and advisory services for institutional clients comprising middle market businesses, non-profits, states, and municipalities. The company was founded in 1858 and is headquartered in Cincinnati, Ohio.