Head-To-Head Analysis: NewtekOne (NASDAQ:NEWT) & First Bancorp (NASDAQ:FNLC)

NewtekOne (NASDAQ:NEWT) and First Bancorp (NASDAQ:FNLC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NewtekOne and First Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	3	0	0	2.00
First Bancorp	0	0	0	0	0.00

NewtekOne presently has a consensus target price of $14.67, indicating a potential upside of 12.73%. Given NewtekOne’s stronger consensus rating and higher probable upside, research analysts clearly believe NewtekOne is more favorable than First Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewtekOne	14.92%	18.73%	2.95%
First Bancorp	16.46%	10.72%	0.87%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$220.51 million	1.55	$47.33 million	$1.79	7.27
First Bancorp	$78.24 million	3.86	$29.52 million	$2.37	11.42

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

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 5.8%. First Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 5.3%. NewtekOne pays out 42.5% of its earnings in the form of a dividend. First Bancorp pays out 60.8% 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. NewtekOne is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

NewtekOne has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Institutional & Insider Ownership

38.3% of NewtekOne shares are owned by institutional investors. Comparatively, 40.4% of First Bancorp shares are owned by institutional investors. 6.5% of NewtekOne shares are owned by insiders. Comparatively, 6.0% of First Bancorp shares are owned 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.

Summary

NewtekOne beats First Bancorp on 10 of the 15 factors compared between the two stocks.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.

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.