Critical Contrast: WesBanco (NASDAQ:WSBC) versus First Bancorp (NASDAQ:FNLC)

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

Dividends

First Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 5.5%. WesBanco pays an annual dividend of $1.44 per share and has a dividend yield of 4.9%. First Bancorp pays out 58.1% of its earnings in the form of a dividend. WesBanco pays out 60.0% 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 and WesBanco has increased its dividend for 13 consecutive years. First Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares First Bancorp and WesBanco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$143.61 million	2.02	$29.52 million	$2.48	10.48
WesBanco	$831.96 million	2.35	$159.03 million	$2.40	12.18

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

Volatility & Risk

First Bancorp has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, WesBanco has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp	16.95%	11.01%	0.88%
WesBanco	15.22%	5.90%	0.79%

Analyst Ratings

This is a summary of current ratings and target prices for First Bancorp and WesBanco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	0	0	0	N/A
WesBanco	0	4	3	0	2.43

WesBanco has a consensus price target of $34.71, indicating a potential upside of 18.72%. Given WesBanco’s higher probable upside, analysts clearly believe WesBanco is more favorable than First Bancorp.

Insider & Institutional Ownership

40.4% of First Bancorp shares are owned by institutional investors. Comparatively, 61.4% of WesBanco shares are owned by institutional investors. 6.0% of First Bancorp shares are owned by company insiders. Comparatively, 3.4% of WesBanco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

WesBanco beats First Bancorp on 9 of the 16 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 WesBanco

WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.