Western Alliance Bancorporation (NYSE:WAL – Get Free Report) and First Bancorp, Inc (ME) (NASDAQ:FNLC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares Western Alliance Bancorporation and First Bancorp, Inc (ME)”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western Alliance Bancorporation | $3.87 billion | 2.23 | $969.00 million | $8.88 | 8.89 |
| First Bancorp, Inc (ME) | $101.39 million | 3.85 | $34.39 million | $3.37 | 10.27 |
Dividends
Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.1%. First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.4%. Western Alliance Bancorporation pays out 18.9% of its earnings in the form of a dividend. First Bancorp, Inc (ME) pays out 45.1% 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. Western Alliance Bancorporation has raised its dividend for 5 consecutive years and First Bancorp, Inc (ME) has raised 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.
Volatility and Risk
Western Alliance Bancorporation has a beta of 1.33, indicating that its share price is 33% more 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.
Profitability
This table compares Western Alliance Bancorporation and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western Alliance Bancorporation | 17.20% | 13.40% | 1.07% |
| First Bancorp, Inc (ME) | 21.43% | 13.30% | 1.18% |
Insider & Institutional Ownership
79.2% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 40.4% of First Bancorp, Inc (ME) shares are owned by institutional investors. 2.8% of Western Alliance Bancorporation 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Western Alliance Bancorporation and First Bancorp, Inc (ME), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western Alliance Bancorporation | 0 | 4 | 11 | 0 | 2.73 |
| First Bancorp, Inc (ME) | 0 | 0 | 1 | 0 | 3.00 |
Western Alliance Bancorporation currently has a consensus price target of $95.47, indicating a potential upside of 20.95%. Given Western Alliance Bancorporation’s higher possible upside, equities research analysts clearly believe Western Alliance Bancorporation is more favorable than First Bancorp, Inc (ME).
Summary
Western Alliance Bancorporation beats First Bancorp, Inc (ME) on 9 of the 17 factors compared between the two stocks.
About Western Alliance Bancorporation
Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.
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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