First BanCorp. (NYSE:FBP) & Commerzbank (OTCMKTS:CRZBY) Head to Head Contrast

Commerzbank (OTCMKTS:CRZBY) and First BanCorp. (NYSE:FBP) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Commerzbank and First BanCorp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	5	3	1	2.56
First BanCorp.	0	3	5	1	2.78

First BanCorp. has a consensus price target of $29.86, suggesting a potential upside of 11.80%. Given First BanCorp.’s stronger consensus rating and higher possible upside, analysts clearly believe First BanCorp. is more favorable than Commerzbank.

Insider and Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. 1.9% 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 company is poised for long-term growth.

Volatility and Risk

Commerzbank has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares Commerzbank and First BanCorp.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$26.54 billion	1.68	$2.97 billion	$3.04	13.95
First BanCorp.	$987.37 million	4.13	$344.87 million	$2.37	11.27

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commerzbank	13.30%	8.89%	0.53%
First BanCorp.	29.24%	18.03%	1.84%

Dividends

Commerzbank pays an annual dividend of $0.90 per share and has a dividend yield of 2.1%. First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Commerzbank pays out 29.6% of its earnings in the form of a dividend. First BanCorp. pays out 33.8% 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. First BanCorp. has raised its dividend for 6 consecutive years. First BanCorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First BanCorp. beats Commerzbank on 12 of the 17 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

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.