Analyzing First BanCorp. (NYSE:FBP) and Mid Penn Bancorp (NASDAQ:MPB)

First BanCorp. (NYSE:FBP) and Mid Penn Bancorp (NASDAQ:MPB) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$921.96 million	3.45	$298.72 million	$1.84	10.71
Mid Penn Bancorp	$182.08 million	2.79	$49.44 million	$2.88	9.11

First BanCorp. has higher revenue and earnings than Mid Penn Bancorp. Mid Penn Bancorp 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

First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. First BanCorp. pays out 39.1% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 27.8% 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 increased its dividend for 6 consecutive years. First BanCorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First BanCorp. and Mid Penn Bancorp’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%
Mid Penn Bancorp	15.99%	8.43%	0.87%

Risk & Volatility

First BanCorp. has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for First BanCorp. and Mid Penn Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	1	4	0	2.80
Mid Penn Bancorp	0	0	2	0	3.00

First BanCorp. presently has a consensus target price of $22.80, suggesting a potential upside of 15.68%. Mid Penn Bancorp has a consensus target price of $36.00, suggesting a potential upside of 37.14%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Mid Penn Bancorp is more favorable than First BanCorp..

Insider & Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 2.3% of First BanCorp. shares are owned by insiders. Comparatively, 8.1% of Mid Penn Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First BanCorp. beats Mid Penn Bancorp on 12 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 Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.