First Bancorp, Inc (ME) (NASDAQ:FNLC) vs. Freedom Financial (OTCMKTS:FDVA) Head-To-Head Analysis

Freedom Financial (OTCMKTS:FDVA) and First Bancorp, Inc (ME) (NASDAQ:FNLC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

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

Analyst Recommendations

This is a summary of current ratings and price targets for Freedom Financial and First Bancorp, Inc (ME), as provided by MarketBeat.

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

Volatility and Risk

Freedom Financial has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$63.61 million	1.33	$380,000.00	$0.05	240.00
First Bancorp, Inc (ME)	$177.61 million	1.87	$34.39 million	$3.07	9.58

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	0.59%	0.44%	0.04%
First Bancorp, Inc (ME)	19.36%	12.70%	1.08%

Summary

First Bancorp, Inc (ME) beats Freedom Financial on 12 of the 13 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

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.