Head to Head Comparison: First BanCorp. (NYSE:FBP) versus Truxton (OTCMKTS:TRUX)

First BanCorp. (NYSE:FBP) and Truxton (OTCMKTS:TRUX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares First BanCorp. and Truxton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	28.31%	17.51%	1.76%
Truxton	24.00%	N/A	N/A

Volatility and Risk

First BanCorp. has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Truxton has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 0.3% of Truxton shares are owned by institutional investors. 1.9% of First BanCorp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for First BanCorp. and Truxton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	3	2	3.00
Truxton	0	0	0	0	0.00

First BanCorp. presently has a consensus target price of $25.86, suggesting a potential upside of 9.21%. Given First BanCorp.’s stronger consensus rating and higher possible upside, equities research analysts clearly believe First BanCorp. is more favorable than Truxton.

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Truxton pays an annual dividend of $3.52 per share and has a dividend yield of 3.5%. First BanCorp. pays out 35.6% of its earnings in the form of a dividend. Truxton pays out 43.8% 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. First BanCorp. has increased its dividend for 6 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	2.92	$344.87 million	$2.25	10.52
Truxton	$92.29 million	3.13	$21.48 million	$8.04	12.44

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

Summary

First BanCorp. beats Truxton on 14 of the 18 factors compared between the two stocks.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.