Critical Review: Eagle Bancorp (NASDAQ:EGBN) vs. First Bancorp (NASDAQ:FBNC)


First Bancorp (NASDAQ: FBNCGet a rating) and Eagle Bancorp (NASDAQ: EGBNGet a rating) are both small cap finance companies, but which is the better company? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and risk

First Bancorp has a beta of 1.17, indicating its stock price is 17% more volatile than the S&P 500. In comparison, Eagle Bancorp has a beta of 0.98, indicating its stock price is 2% less volatile than the S&P 500.

Profitability

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

Net margins Return on equity return on assets
First Bancorp 29.04% 10.92% 1.21%
Eagle Bancorp 45.21% 13.59% 1.57%

Benefits and evaluation

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

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First Bancorp $329.53 million 3.90 $95.64 million $3.25 11.09
Eagle Bancorp $404.88 million 3.85 $176.69 million $5.58 8.74

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

Analyst Notes

This is a summary of the current ratings of First Bancorp and Eagle Bancorp, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First Bancorp 0 1 1 0 2.50
Eagle Bancorp 0 1 0 0 2.00

First Bancorp currently has a consensus price target of $50.50, suggesting a potential upside of 39.85%. Given First Bancorp’s higher consensus rating and higher possible upside, research analysts clearly believe that First Bancorp is more favorable than Eagle Bancorp.

Institutional and insider ownership

68.6% of First Bancorp’s shares are held by institutional investors. By comparison, 73.8% of Eagle Bancorp’s shares are held by institutional investors. 1.9% of First Bancorp shares are held by insiders of the company. By comparison, 2.1% of Eagle Bancorp shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

Dividends

First Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Eagle Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. First Bancorp pays 27.1% of its earnings as a dividend. Eagle Bancorp pays 28.7% 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 increased its dividend for 2 consecutive years and Eagle Bancorp increased its dividend for 1 consecutive year.

Summary

Eagle Bancorp beats First Bancorp on 9 out of 17 factors compared between the two stocks.

About First Bancorp (Get a rating)

First Bancorp operates as a bank holding company for First Bank which provides banking products and services to individuals and small and medium-sized businesses, primarily in North Carolina and northeastern South Carolina. It accepts deposit products, such as checking, savings, and money market accounts, as well as term deposits, including certificates of deposit and individual retirement accounts. The Company also offers loans for consumer and commercial purposes, including business, real estate, personal, home improvement and automobile loans, as well as residential mortgages and government loans. small enterprises ; and accounts receivable financing and factoring, inventory financing and purchase order financing services. In addition, it provides credit and debit cards, letters of credit and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, telephone banking and remote deposit collection services. In addition, the Company offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance and corporate pension plans, as well as P&C insurance products; and financial planning services. As of December 31, 2021, it operated 121 branches comprising 114 branches located in North Carolina and seven branches in South Carolina. First Bancorp was founded in 1934 and is headquartered in Southern Pines, North Carolina.

About Eagle Bancorp (Get a rating)

Eagle Bancorp, Inc. operates as a bank holding company for EagleBank which provides business and consumer banking services primarily in the United States. The Company also offers various consumer and commercial loan products including commercial loans for working capital, equipment purchase, home equity lines of credit and government contract financing; asset-based lending and accounts receivable financing; construction loans and commercial real estate; commercial equipment financing; consumer home equity lines of credit, personal lines of credit and term loans; consumer installment loans, such as car and personal loans; personal credit cards; and residential mortgages. Additionally, it provides online and mobile banking services; and other services, including cash management services, business transfer accounts, safe deposit boxes, remote deposit captures, account reconciliation services, merchant card services, safe deposit boxes and automated clearing houses, as well as after-hours deposits and ATM services. Additionally, the Company offers insurance products and services through a referral program. The company serves sole proprietors, small and medium businesses, partnerships, corporations, non-profit organizations and associations, individuals and investors. As of December 31, 2021, it operated seventeen banking offices including 6 in suburban Maryland, 5 in the District of Columbia and 6 in Northern Virginia. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.



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