Comparing ServisFirst Bancshares (NYSE:SFBS) & First BanCorp. (NYSE:FBP)

ServisFirst Bancshares (NYSE:SFBS) and First BanCorp. (NYSE:FBP) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Risk and Volatility

ServisFirst Bancshares has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	23.16%	14.81%	1.39%
First BanCorp.	24.37%	18.89%	1.58%

Dividends

ServisFirst Bancshares pays an annual dividend of $1.34 per share and has a dividend yield of 1.9%. First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 3.9%. ServisFirst Bancshares pays out 32.2% of its earnings in the form of a dividend. First BanCorp. pays out 39.8% 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.

Earnings & Valuation

This table compares ServisFirst Bancshares and First BanCorp.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$477.66 million	7.97	$227.24 million	$4.16	16.76
First BanCorp.	$905.08 million	3.29	$298.72 million	$1.81	10.08

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

Analyst Recommendations

This is a summary of current ratings and target prices for ServisFirst Bancshares and First BanCorp., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	2	0	0	2.00
First BanCorp.	0	1	4	0	2.80

ServisFirst Bancshares currently has a consensus target price of $93.50, suggesting a potential upside of 34.12%. First BanCorp. has a consensus target price of $22.40, suggesting a potential upside of 22.83%. Given ServisFirst Bancshares’ higher probable upside, equities research analysts plainly believe ServisFirst Bancshares is more favorable than First BanCorp..

Institutional & Insider Ownership

67.3% of ServisFirst Bancshares shares are owned by institutional investors. Comparatively, 97.9% of First BanCorp. shares are owned by institutional investors. 7.4% of ServisFirst Bancshares shares are owned by company insiders. Comparatively, 2.5% of First BanCorp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

First BanCorp. beats ServisFirst Bancshares on 10 of the 16 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.