Territorial Bancorp (NASDAQ: TBNK) and First BanCorp. (NYSE:FBP) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
46.0% of Territorial Bancorp shares are owned by institutional investors. Comparatively, 91.1% of First BanCorp. shares are owned by institutional investors. 9.8% of Territorial Bancorp shares are owned by company insiders. Comparatively, 21.1% of First BanCorp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Territorial Bancorp and First BanCorp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Territorial Bancorp||$62.38 million||4.45||$16.87 million||$1.82||16.46|
|First BanCorp.||$477.76 million||2.53||$99.35 million||$0.46||12.15|
First BanCorp. has higher revenue and earnings than Territorial Bancorp. First BanCorp. is trading at a lower price-to-earnings ratio than Territorial Bancorp, indicating that it is currently the more affordable of the two stocks.
Territorial Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. First BanCorp. does not pay a dividend. Territorial Bancorp pays out 44.0% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Territorial Bancorp and First BanCorp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
First BanCorp. has a consensus price target of $7.25, suggesting a potential upside of 29.70%. Given First BanCorp.’s stronger consensus rating and higher probable upside, analysts clearly believe First BanCorp. is more favorable than Territorial Bancorp.
This table compares Territorial Bancorp and First BanCorp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Territorial Bancorp has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.
First BanCorp. beats Territorial Bancorp on 9 of the 16 factors compared between the two stocks.
Territorial Bancorp Company Profile
Territorial Bancorp Inc. is the holding company for Territorial Savings Bank (the Bank). The Bank provides financial services to individuals, families and businesses through its banking offices located throughout the State of Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits together with funds generated from operations and borrowings in one- to four-family residential mortgage loans and investment securities. The Bank offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit (CDs), money market accounts, and commercial and regular checking accounts. Through its subsidiary, Territorial Financial Services, Inc., the Bank engages in insurance agency activities. It also offers various non-deposit investments to its customers, including annuities and mutual funds, through a third-party broker-dealer.
First BanCorp. Company Profile
First BanCorp. is a financial holding company. As of December 31, 2016, the Company controlled two subsidiaries: FirstBank Puerto Rico (the Bank or FirstBank) and FirstBank Insurance Agency, Inc. (FirstBank Insurance Agency). It operates in six segments: Commercial and Corporate Banking, which consists of lending and other services; Consumer (Retail) Banking, which consists of consumer lending and deposit-taking activities; Mortgage Banking, which consists of the origination, sale, and servicing of a range of residential mortgage loan products and related hedging activities; Treasury and Investments, which consists of treasury and investment management functions; United States Operations, which consists of all banking activities conducted by FirstBank on the United States mainland, and Virgin Islands Operations, which consists of banking activities conducted by FirstBank in the United States Virgin Islands and British Virgin Islands, including retail and commercial banking services.
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