Head-To-Head Comparison: First Bancorp (NASDAQ:FNLC) versus Park National (NYSE:PRK)

First Bancorp (NASDAQ:FNLC) and Park National (NYSE:PRK) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Dividends

First Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 5.2%. Park National pays an annual dividend of $4.24 per share and has a dividend yield of 2.5%. First Bancorp pays out 58.1% of its earnings in the form of a dividend. Park National pays out 53.7% 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. First Bancorp has increased its dividend for 7 consecutive years. First Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares First Bancorp and Park National’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$143.61 million	2.16	$29.52 million	$2.48	11.23
Park National	$564.30 million	4.87	$126.73 million	$7.90	21.54

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

Institutional and Insider Ownership

40.4% of First Bancorp shares are owned by institutional investors. Comparatively, 62.7% of Park National shares are owned by institutional investors. 6.0% of First Bancorp shares are owned by insiders. Comparatively, 2.7% of Park National shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for First Bancorp and Park National, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	0	0	0	N/A
Park National	0	2	0	0	2.00

Park National has a consensus target price of $130.00, suggesting a potential downside of 23.60%. Given Park National’s higher probable upside, analysts clearly believe Park National is more favorable than First Bancorp.

Risk and Volatility

First Bancorp has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Park National has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp	18.41%	11.68%	0.94%
Park National	22.03%	12.13%	1.37%

Summary

Park National beats First Bancorp on 12 of the 15 factors compared between the two stocks.

About First Bancorp

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.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.