Head to Head Comparison: GrandSouth Bancorporation (OTCMKTS:GRRB) versus First Bancorp (NASDAQ:FBNC)

First Bancorp (NASDAQ:FBNC) and GrandSouth Bancorporation (OTCMKTS:GRRB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares First Bancorp and GrandSouth Bancorporation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$400.42 million	6.65	$111.05 million	$2.93	21.96
GrandSouth Bancorporation	N/A	N/A	N/A	N/A	N/A

First Bancorp has higher revenue and earnings than GrandSouth Bancorporation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Bancorp and GrandSouth Bancorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	3	3	1	2.71
GrandSouth Bancorporation	0	0	0	0	0.00

First Bancorp currently has a consensus price target of $62.95, suggesting a potential downside of 2.17%. Given First Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe First Bancorp is more favorable than GrandSouth Bancorporation.

Insider & Institutional Ownership

68.4% of First Bancorp shares are held by institutional investors. 2.0% of First Bancorp shares are held by insiders. Comparatively, 33.3% of GrandSouth Bancorporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp	20.59%	10.86%	1.38%
GrandSouth Bancorporation	N/A	N/A	N/A

Summary

First Bancorp beats GrandSouth Bancorporation on 9 of the 10 factors compared between the two stocks.

About First Bancorp

First Bancorp operates as the bank holding company for First Bank that provides banking products and services for individuals and small to medium-sized businesses. The company accepts deposit products, such as checking, savings, and money market accounts, as well as time deposits, including certificate of deposits and individual retirement accounts. It also offers loans for a range of consumer and commercial purposes comprising loans for business, real estate, personal, home improvement, and automobiles, as well as residential mortgages and small business administration loans; and accounts receivable financing and factoring, inventory financing, and purchase order financing services. In addition, the company provides credit and debit cards, letter of credits, and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, bank-by-phone services, and remote deposit capture services. Further, it offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance, and company retirement plans, as well as property and casualty insurance products; and financial planning services. The company was founded in 1934 and is headquartered in Southern Pines, North Carolina.

About GrandSouth Bancorporation

GrandSouth Bancorporation operates as the bank holding company for GrandSouth Bank that provides banking services to individuals and businesses. It accepts checking accounts, savings accounts, money market accounts, various term certificates of deposit, and individual retirement accounts. The company also offers one-to-four family residential, commercial real estate, home equity and lines of credit, residential construction and other construction and land, and commercial loans; and consumer loans comprising loans secured by personal property, such as automobiles, marketable securities, and boats and motorcycles, as well as unsecured consumer debt. In addition, it invests in investment securities, as well as provides specialty floor plan lending to small auto dealerships under the CarBucks trade name. The company operates through eight branches across South Carolina. GrandSouth Bancorporation was founded in 1998 and is based in Greenville, South Carolina.