Financial Review: First Bancorp (NASDAQ:FBNC) versus Madison County Financial (OTCMKTS:MCBK)

First Bancorp (NASDAQ:FBNC) and Madison County Financial (OTCMKTS:MCBK) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Insider & Institutional Ownership

68.4% of First Bancorp shares are owned by institutional investors. 3.7% of First Bancorp shares are owned by company insiders. Comparatively, 16.9% of Madison County Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

First Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Madison County Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. First Bancorp pays out 39.3% of its earnings in the form of a dividend.

Profitability

This table compares First Bancorp and Madison County Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp	17.65%	8.96%	1.09%
Madison County Financial	N/A	N/A	N/A

Volatility and Risk

First Bancorp has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Madison County Financial has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Bancorp and Madison County Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$537.14 million	3.80	$76.21 million	$2.34	21.02
Madison County Financial	$29.54 million	2.44	$3.82 million	N/A	N/A

First Bancorp has higher revenue and earnings than Madison County Financial.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Bancorp and Madison County Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	4	2	0	2.33
Madison County Financial	0	0	0	0	0.00

First Bancorp currently has a consensus target price of $56.67, suggesting a potential upside of 15.20%. Given First Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Bancorp is more favorable than Madison County Financial.

Summary

First Bancorp beats Madison County Financial on 12 of the 14 factors compared between the two stocks.

About First Bancorp

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses. The company accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. It also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, the company provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, it offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina.

About Madison County Financial

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.