Head-To-Head Analysis: First Bancorp, Inc (ME) (NASDAQ:FNLC) & Freddie Mac (OTCMKTS:FMCC)

Freddie Mac (OTCMKTS:FMCC) and First Bancorp, Inc (ME) (NASDAQ:FNLC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Institutional and Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. 0.1% of Freddie Mac shares are held by insiders. Comparatively, 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Freddie Mac and First Bancorp, Inc (ME)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freddie Mac	9.58%	-90.29%	0.37%
First Bancorp, Inc (ME)	21.43%	13.30%	1.18%

Analyst Ratings

This is a summary of recent recommendations and price targets for Freddie Mac and First Bancorp, Inc (ME), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freddie Mac	1	2	1	1	2.40
First Bancorp, Inc (ME)	0	0	1	0	3.00

Freddie Mac presently has a consensus target price of $11.12, suggesting a potential upside of 202.31%. Given Freddie Mac’s higher probable upside, equities research analysts plainly believe Freddie Mac is more favorable than First Bancorp, Inc (ME).

Risk & Volatility

Freddie Mac has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, First Bancorp, Inc (ME) has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Freddie Mac and First Bancorp, Inc (ME)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freddie Mac	$129.82 billion	0.02	$10.73 billion	$0.01	368.00
First Bancorp, Inc (ME)	$177.61 million	2.11	$34.39 million	$3.37	9.88

Freddie Mac has higher revenue and earnings than First Bancorp, Inc (ME). First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than Freddie Mac, indicating that it is currently the more affordable of the two stocks.

Summary

First Bancorp, Inc (ME) beats Freddie Mac on 8 of the 14 factors compared between the two stocks.

About Freddie Mac

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.

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.