First Bancorp, Inc (ME) (NASDAQ:FNLC) and 1st Colonial Bancorp (OTCMKTS:FCOB) Critical Analysis

First Bancorp, Inc (ME) (NASDAQ:FNLC) and 1st Colonial Bancorp (OTCMKTS:FCOB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Bancorp, Inc (ME) and 1st Colonial Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp, Inc (ME)	0	0	1	0	3.00
1st Colonial Bancorp	0	0	0	0	0.00

Valuation and Earnings

This table compares First Bancorp, Inc (ME) and 1st Colonial Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$177.61 million	1.72	$34.39 million	$3.07	8.84
1st Colonial Bancorp	$49.61 million	2.04	$7.30 million	$1.48	13.51

First Bancorp, Inc (ME) has higher revenue and earnings than 1st Colonial Bancorp. First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than 1st Colonial Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are held by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

First Bancorp, Inc (ME) has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, 1st Colonial Bancorp has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Profitability

This table compares First Bancorp, Inc (ME) and 1st Colonial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	19.36%	12.70%	1.08%
1st Colonial Bancorp	14.71%	10.87%	1.04%

Summary

First Bancorp, Inc (ME) beats 1st Colonial Bancorp on 11 of the 13 factors compared between the two stocks.

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.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.