Hilltop (NYSE:HTH) versus First Bancorp, Inc (ME) (NASDAQ:FNLC) Head-To-Head Survey

First Bancorp, Inc (ME) (NASDAQ:FNLC) and Hilltop (NYSE:HTH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.1%. Hilltop pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. First Bancorp, Inc (ME) pays out 43.3% of its earnings in the form of a dividend. Hilltop pays out 36.7% 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 raised its dividend for 6 consecutive years and Hilltop has raised its dividend for 8 consecutive years.

Valuation & Earnings

This table compares First Bancorp, Inc (ME) and Hilltop”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$104.34 million	3.99	$34.39 million	$3.51	10.50
Hilltop	$1.20 billion	1.74	$165.59 million	$2.40	15.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	22.21%	13.69%	1.23%
Hilltop	9.08%	6.51%	0.88%

Risk & Volatility

First Bancorp, Inc (ME) has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Hilltop has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for First Bancorp, Inc (ME) and Hilltop, 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
Hilltop	1	3	1	0	2.00

Hilltop has a consensus price target of $39.00, suggesting a potential upside of 6.64%. Given Hilltop’s higher probable upside, analysts plainly believe Hilltop is more favorable than First Bancorp, Inc (ME).

Institutional & Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. Comparatively, 57.1% of Hilltop shares are owned by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are owned by insiders. Comparatively, 5.4% of Hilltop shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Hilltop beats First Bancorp, Inc (ME) on 9 of the 16 factors compared between the two stocks.

About First Bancorp, Inc (ME)

First Bancorp, Inc. is a bank holding company for The First, a community bank headquartered in Damariscotta, Maine. The bank traces its roots to 1864, when it was established as The First National Bank of Damariscotta. The First provides personal and business banking services, including checking and savings accounts, mortgages, consumer and commercial loans, and cash-management services. It also offers investment and wealth-management services. The company serves individuals, businesses, and communities across Maine, with a focus on the state’s Midcoast and eastern regions.

About Hilltop

Hilltop Holdings Inc. is a Dallas-based financial holding company with businesses in banking, mortgage lending and securities. Its operations primarily serve customers in Texas and other U.S. markets. Through PlainsCapital Bank, Hilltop provides commercial and consumer banking services, including deposit accounts, loans and treasury management. PrimeLending originates residential mortgages, while HilltopSecurities offers investment banking, municipal finance, brokerage and wealth management services.