Community Trust Bancorp (NASDAQ:CTBI) & First BanCorp. (NYSE:FBP) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	26.73%	17.45%	1.64%
Community Trust Bancorp	23.24%	11.91%	1.48%

Analyst Ratings

This is a summary of recent ratings for First BanCorp. and Community Trust Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	1	3	0	2.75
Community Trust Bancorp	0	0	3	0	3.00

First BanCorp. currently has a consensus price target of $24.00, indicating a potential upside of 21.85%. Community Trust Bancorp has a consensus price target of $63.50, indicating a potential upside of 20.98%. Given First BanCorp.’s higher possible upside, research analysts plainly believe First BanCorp. is more favorable than Community Trust Bancorp.

Dividends

First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 4.0%. First BanCorp. pays out 35.0% of its earnings in the form of a dividend. Community Trust Bancorp pays out 41.0% 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 and Community Trust Bancorp has increased its dividend for 44 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

First BanCorp. has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 60.2% of Community Trust Bancorp shares are owned by institutional investors. 2.3% of First BanCorp. shares are owned by insiders. Comparatively, 2.3% of Community Trust Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares First BanCorp. and Community Trust Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.23 billion	2.58	$298.72 million	$2.06	9.56
Community Trust Bancorp	$376.01 million	2.53	$82.81 million	$5.17	10.15

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

Summary

First BanCorp. beats Community Trust Bancorp on 10 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 Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.