Reviewing First BanCorp. (NYSE:FBP) & Coastal Financial (NASDAQ:CCB)

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

Earnings & Valuation

This table compares First BanCorp. and Coastal Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$920.41 million	3.60	$298.72 million	$1.84	11.05
Coastal Financial	$452.86 million	2.70	$45.22 million	$3.25	25.03

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	24.37%	18.89%	1.58%
Coastal Financial	6.43%	14.98%	1.20%

Analyst Ratings

This is a summary of current ratings for First BanCorp. and Coastal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	1	4	0	2.80
Coastal Financial	0	0	3	1	3.25

First BanCorp. currently has a consensus price target of $22.80, indicating a potential upside of 12.18%. Coastal Financial has a consensus price target of $105.00, indicating a potential upside of 29.09%. Given Coastal Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Coastal Financial is more favorable than First BanCorp..

Risk and Volatility

First BanCorp. has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 59.2% of Coastal Financial shares are owned by institutional investors. 2.3% of First BanCorp. shares are owned by company insiders. Comparatively, 16.8% of Coastal Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First BanCorp. beats Coastal Financial on 8 of the 15 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 Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.