First Bancorp (NASDAQ:FBNC) vs. BEO Bancorp (OTCMKTS:BEOB) Critical Analysis

First Bancorp (NASDAQ:FBNC) and BEO Bancorp (OTCMKTS:BEOB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Earnings and Valuation

This table compares First Bancorp and BEO Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$384.94 million	4.55	$104.13 million	$2.77	15.36
BEO Bancorp	$51.01 million	1.77	$14.21 million	N/A	N/A

First Bancorp has higher revenue and earnings than BEO Bancorp.

Insider and Institutional Ownership

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

Volatility & Risk

First Bancorp has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, BEO Bancorp has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Dividends

First Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. BEO Bancorp pays an annual dividend of $1.15 per share and has a dividend yield of 1.6%. First Bancorp pays out 31.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Bancorp and BEO Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	0	2	0	3.00
BEO Bancorp	0	0	0	0	N/A

First Bancorp presently has a consensus price target of $38.50, suggesting a potential downside of 9.54%. Given First Bancorp’s higher possible upside, analysts plainly believe First Bancorp is more favorable than BEO Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp	20.17%	8.39%	0.94%
BEO Bancorp	N/A	N/A	N/A

Summary

First Bancorp beats BEO Bancorp on 12 of the 13 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 BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.