First Bancorp, Inc (ME) (NASDAQ:FNLC) versus Univest Corporation of Pennsylvania (NASDAQ:UVSP) Head to Head Comparison

First Bancorp, Inc (ME) (NASDAQ:FNLC) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for First Bancorp, Inc (ME) and Univest Corporation of Pennsylvania, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp, Inc (ME)	0	0	1	0	3.00
Univest Corporation of Pennsylvania	0	3	1	0	2.25

Univest Corporation of Pennsylvania has a consensus price target of $35.00, indicating a potential downside of 6.87%. Given Univest Corporation of Pennsylvania’s higher possible upside, analysts plainly believe Univest Corporation of Pennsylvania is more favorable than First Bancorp, Inc (ME).

Profitability

This table compares First Bancorp, Inc (ME) and Univest Corporation of Pennsylvania’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%
Univest Corporation of Pennsylvania	17.51%	9.82%	1.10%

Earnings & Valuation

This table compares First Bancorp, Inc (ME) and Univest Corporation of Pennsylvania”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$177.61 million	1.87	$34.39 million	$3.07	9.58
Univest Corporation of Pennsylvania	$328.06 million	3.22	$90.76 million	$3.14	11.97

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

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 5.0%. Univest Corporation of Pennsylvania pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. First Bancorp, Inc (ME) pays out 48.2% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 28.0% 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, Inc (ME) has increased its dividend for 6 consecutive years and Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are owned by insiders. Comparatively, 1.8% of Univest Corporation of Pennsylvania shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

First Bancorp, Inc (ME) has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Summary

Univest Corporation of Pennsylvania beats First Bancorp, Inc (ME) on 10 of the 16 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 Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.