Critical review: First Bancorp (NASDAQ: FNLC) and KeyCorp (NYSE: KEY)
Critical review: First Bancorp (NASDAQ: FNLC) and KeyCorp (NYSE: KEY)

First Bancorp (NASDAQ: FNLCGet a rating) and Key Corp (NYSE: KEYGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on their dividend strength, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares the net margins, return on equity and return on assets of First Bancorp and KeyCorp.

Net margins Return on equity return on assets
First Bancorp 37.60% 15.32% 1.46%
Key Corp 33.32% 15.93% 1.37%

Analyst Notes

This is a summary of recent ratings and recommendations for First Bancorp and KeyCorp, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First Bancorp 0 0 0 0 N / A
Key Corp 0 5 8 0 2.62

KeyCorp has a consensus target price of $27.15, suggesting a potential upside of 32.55%. Given KeyCorp’s likely higher upside, analysts clearly think KeyCorp is more favorable than First Bancorp.

Dividends

First Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 4.4%. KeyCorp pays an annual dividend of $0.78 per share and has a dividend yield of 3.8%. First Bancorp pays 38.8% of its profits as a dividend. KeyCorp pays 29.7% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Bancorp has increased its dividend for 2 consecutive years and KeyCorp has increased its dividend for 11 consecutive years.

Risk and Volatility

First Bancorp has a beta of 0.55, which means its stock price is 45% less volatile than the S&P 500. In comparison, KeyCorp has a beta of 1.32, which means its stock price is 32% more volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of First Bancorp and KeyCorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First Bancorp $96.46 million 3.32 $36.27 million $3.30 8.80
Key Corp $7.56 billion 2.49 $2.63 billion $2.63 7.79

KeyCorp has higher revenue and profit than First Bancorp. KeyCorp trades at a lower price-to-earnings ratio than First Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.9% of First Bancorp’s shares are held by institutional investors. By comparison, 82.8% of KeyCorp’s shares are held by institutional investors. 5.8% of the shares of First Bancorp are held by insiders of the company. By comparison, 0.5% of KeyCorp stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Summary

KeyCorp beats First Bancorp on 9 out of 16 factors compared between the two stocks.

About First Bancorp (Get a rating)

The First Bancorp, Inc. operates as a holding company for First National Bank which provides a range of personal and business banking products and services. It offers various deposit products including demand, NOW, savings, money market and certificates of deposit accounts. The Company also offers commercial real estate lending products, such as mortgage loans to finance investments in real estate including multi-family residential, commercial/retail, office, industrial, hotel, educational and other special purpose properties or mixed; commercial construction loans to finance the construction of owner-occupied and non-owner occupied commercial real estate; and other commercial loans, which include revolving and term loan obligations to companies and businesses for the purpose of financing working capital or capital investment. In addition, it offers municipal loans for capitalized expenditures, construction projects or tax anticipation notes; residential term loans, which include home mortgage amortization and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which amortize personal loans secured by automobiles, boats and recreational vehicles, as well as unsecured short-term notes. In addition, the company provides private banking, financial planning, investment management and trust services to individuals, businesses, non-profit organizations and municipalities, as well as payment processing services. It operates through 18 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.

About KeyCorp (Get a rating)

KeyCorp operates as a holding company of the KeyBank National Association which provides various retail and commercial banking products and services in the United States. It operates in two segments, Consumer Bank and Commercial Bank. The Company offers various investment deposits, products and services; and personal finance and financial wellness, student loan refinance, mortgage and home equity, loans, credit cards, cash flow, business consulting, wealth management, asset management, investing, cash management, management portfolio, trust and related services to individuals and small and medium-sized businesses. It also offers a range of banking and capital market products, such as syndicated financing, debt and equity capital market products, commercial payments, equipment financing, commercial mortgage banking, derivatives, foreign exchange, financial advice and public finance, and commercial products. mortgage loans including consumer, energy, healthcare, industrial, public sector, real estate and technology loans for middle market customers. In addition, the Company offers community development finance, securities underwriting, brokerage and investment banking services. As of December 31, 2021, it operated through a network of approximately 999 branches and 1,317 ATMs in 15 states, along with additional offices, online and mobile banking capabilities, and a telephone banking call center. KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.



Get news and reviews for First Bancorp Daily – Enter your email address below to receive a concise daily summary of the latest news and analyst ratings for First Bancorp and related companies with MarketBeat.com’s FREE daily newsletter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here