Analyzing Pioneer Bankshares (OTCMKTS:PNBI) and First Bancorp (OTCMKTS:FNLC)

Pioneer Bankshares (OTCMKTS:PNBI) and First Bancorp (NASDAQ:FNLC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Pioneer Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. First Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. First Bancorp has increased its dividend for 5 consecutive years. First Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

32.6% of First Bancorp shares are owned by institutional investors. 13.7% of Pioneer Bankshares shares are owned by company insiders. Comparatively, 6.7% of First Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Pioneer Bankshares N/A N/A N/A
First Bancorp 28.13% 12.77% 1.24%

Risk & Volatility

Pioneer Bankshares has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pioneer Bankshares and First Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pioneer Bankshares 0 0 0 0 N/A
First Bancorp 0 0 0 0 N/A

Valuation and Earnings

This table compares Pioneer Bankshares and First Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pioneer Bankshares N/A N/A N/A N/A N/A
First Bancorp $83.14 million 3.39 $23.54 million N/A N/A

First Bancorp has higher revenue and earnings than Pioneer Bankshares.

Summary

First Bancorp beats Pioneer Bankshares on 8 of the 9 factors compared between the two stocks.

Pioneer Bankshares Company Profile

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services in Virginia. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise automobile loans, dealer loans, personal installment and single-pay loans, mortgage loans, home equity loans, home equity line of credit, and credit cards; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction. The company also provides personal and business debit cards; safe deposit boxes, travelers cheques, and notary public and medallion guarantee; remote deposit capture; and merchant services. In addition, it offers investment products, which include individual retirement accounts, 529 college savings plans, small business investment strategies, fixed and variable annuities, and personalized investment advisory services; and financial advisory services. Further, the company provides insurance products, such as homeowners, automobile, life, and health insurance; and real estate, professional liability, personal injury, and workman's compensation insurance. It operates branch offices in Stanley, Luray, Shenandoah, Harrisonburg, Stanardsville, Charlottesville, and Ruckersville. The company was founded in 1909 and is based in Stanley, Virginia.

First Bancorp Company Profile

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individual and corporate customers. The company offers various deposit products, including demand, NOW, savings, money market, and certificates of deposit accounts. It also provides commercial loan products, such as mortgage loans to finance investments in real property comprising multi-family residential, commercial/retail, office, industrial, hotel, educational, and other specific or mixed use properties; loans to finance construction of owner- and non-owner occupied commercial real estate properties; and revolving and term loan obligations to business and corporate enterprises for the purpose of financing working capital or capital investment. In addition, the company offers municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes; residential term loans that include amortizing home mortgages and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which are amortizing loans to individuals collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes. Further, it provides private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities. The First Bancorp, Inc. operates through 16 full-service banking offices in Lincoln, Knox, Hancock, Washington, and Penobscot 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.

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