Hanover Bancorp (NASDAQ:HNVR – Get Free Report) and First Bancorp, Inc (ME) (NASDAQ:FNLC – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership
15.0% of Hanover Bancorp shares are owned by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. 24.4% of Hanover Bancorp shares are owned by company insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Hanover Bancorp and First Bancorp, Inc (ME)”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hanover Bancorp | $143.32 million | 1.19 | $7.49 million | $1.05 | 22.60 |
| First Bancorp, Inc (ME) | $177.61 million | 2.26 | $34.39 million | $3.24 | 10.97 |
First Bancorp, Inc (ME) has higher revenue and earnings than Hanover Bancorp. First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than Hanover Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hanover Bancorp and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hanover Bancorp | 5.53% | 5.09% | 0.42% |
| First Bancorp, Inc (ME) | 20.34% | 13.09% | 1.14% |
Volatility and Risk
Hanover Bancorp has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
Dividends
Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. First Bancorp, Inc (ME) pays an annual dividend of $1.48 per share and has a dividend yield of 4.2%. Hanover Bancorp pays out 38.1% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 45.7% 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 increased its dividend for 6 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings for Hanover Bancorp and First Bancorp, Inc (ME), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hanover Bancorp | 1 | 3 | 1 | 0 | 2.00 |
| First Bancorp, Inc (ME) | 0 | 0 | 1 | 0 | 3.00 |
Hanover Bancorp currently has a consensus price target of $24.33, suggesting a potential upside of 2.54%. Given Hanover Bancorp’s higher possible upside, analysts clearly believe Hanover Bancorp is more favorable than First Bancorp, Inc (ME).
Summary
First Bancorp, Inc (ME) beats Hanover Bancorp on 12 of the 16 factors compared between the two stocks.
About Hanover Bancorp
Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.
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.
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