Southern First Bancshares (NASDAQ:SFST) and First Bancorp (NASDAQ:FBNC) Financial Survey

Southern First Bancshares (NASDAQ:SFST) and First Bancorp (NASDAQ:FBNC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Valuation and Earnings

This table compares Southern First Bancshares and First Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern First Bancshares	$224.62 million	1.94	$30.37 million	$3.74	14.14
First Bancorp	$549.30 million	4.06	$111.05 million	$2.68	20.04

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

Analyst Ratings

This is a summary of recent recommendations for Southern First Bancshares and First Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern First Bancshares	0	2	1	0	2.33
First Bancorp	0	3	2	1	2.67

Southern First Bancshares currently has a consensus price target of $64.00, indicating a potential upside of 21.05%. First Bancorp has a consensus price target of $61.25, indicating a potential upside of 14.06%. Given Southern First Bancshares’ higher probable upside, analysts clearly believe Southern First Bancshares is more favorable than First Bancorp.

Risk and Volatility

Southern First Bancshares has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Southern First Bancshares and First Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern First Bancshares	13.52%	8.63%	0.70%
First Bancorp	19.24%	10.41%	1.30%

Insider & Institutional Ownership

75.0% of Southern First Bancshares shares are held by institutional investors. Comparatively, 68.4% of First Bancorp shares are held by institutional investors. 7.1% of Southern First Bancshares shares are held by insiders. Comparatively, 3.7% of First Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

First Bancorp beats Southern First Bancshares on 11 of the 15 factors compared between the two stocks.

About Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.

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.