Reviewing Quaint Oak Bancorp (OTCMKTS:QNTO) and First Bancorp, Inc (ME) (NASDAQ:FNLC)

Quaint Oak Bancorp (OTCMKTS:QNTO) and First Bancorp, Inc (ME) (NASDAQ:FNLC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

8.6% of Quaint Oak Bancorp shares are held by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. 27.5% of Quaint Oak Bancorp shares are held by insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Quaint Oak Bancorp and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaint Oak Bancorp	3.47%	3.30%	0.26%
First Bancorp, Inc (ME)	17.94%	11.98%	0.99%

Analyst Ratings

This is a summary of recent ratings and target prices for Quaint Oak Bancorp and First Bancorp, Inc (ME), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaint Oak Bancorp	0	0	0	0	0.00
First Bancorp, Inc (ME)	0	1	0	0	2.00

Dividends

Quaint Oak Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 5.2%. Quaint Oak Bancorp pays out 24.6% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 52.7% 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, Inc (ME) has increased its dividend for 6 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Quaint Oak Bancorp and First Bancorp, Inc (ME)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaint Oak Bancorp	$51.59 million	0.54	$2.80 million	$0.65	16.31
First Bancorp, Inc (ME)	$165.19 million	1.92	$27.05 million	$2.81	10.07

First Bancorp, Inc (ME) has higher revenue and earnings than Quaint Oak Bancorp. First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than Quaint Oak Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

First Bancorp, Inc (ME) beats Quaint Oak Bancorp on 11 of the 14 factors compared between the two stocks.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.

About First Bancorp, Inc (ME)

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.