Comparing First Bancorp (NASDAQ:FBNC) & Atlantic Union Bankshares (NASDAQ:AUB)

First Bancorp (NASDAQ:FBNC) and Atlantic Union Bankshares (NASDAQ:AUB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Earnings & Valuation

This table compares First Bancorp and Atlantic Union Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$357.72 million	4.71	$76.21 million	$2.11	19.29
Atlantic Union Bankshares	$857.44 million	5.10	$209.13 million	$2.19	14.02

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

Profitability

This table compares First Bancorp and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp	14.19%	8.04%	0.95%
Atlantic Union Bankshares	15.53%	8.50%	1.06%

Dividends

First Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. Atlantic Union Bankshares pays an annual dividend of $1.36 per share and has a dividend yield of 4.4%. First Bancorp pays out 41.7% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 62.1% 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. Atlantic Union Bankshares has increased its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

68.4% of First Bancorp shares are held by institutional investors. Comparatively, 78.6% of Atlantic Union Bankshares shares are held by institutional investors. 3.7% of First Bancorp shares are held by company insiders. Comparatively, 0.9% of Atlantic Union Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Bancorp and Atlantic Union Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	2	2	0	2.50
Atlantic Union Bankshares	0	2	3	1	2.83

First Bancorp presently has a consensus target price of $49.33, suggesting a potential upside of 21.21%. Atlantic Union Bankshares has a consensus target price of $39.00, suggesting a potential upside of 26.99%. Given Atlantic Union Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe Atlantic Union Bankshares is more favorable than First Bancorp.

Volatility & Risk

First Bancorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Summary

Atlantic Union Bankshares beats First Bancorp on 14 of the 17 factors compared between the two stocks.

About First Bancorp

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses. The company accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. It also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, the company provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, it offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.