First BanCorp. (NYSE:FBP) vs. Stock Yards Bancorp (NASDAQ:SYBT) Financial Survey

First BanCorp. (NYSE:FBP) and Stock Yards Bancorp (NASDAQ:SYBT) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

First BanCorp. has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Valuation and Earnings

This table compares First BanCorp. and Stock Yards Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	2.82	$344.87 million	$2.15	10.57
Stock Yards Bancorp	$564.54 million	3.72	$140.15 million	$4.75	15.00

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

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Stock Yards Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. First BanCorp. pays out 37.2% of its earnings in the form of a dividend. Stock Yards Bancorp pays out 26.9% 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 and Stock Yards Bancorp has increased its dividend for 15 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	27.48%	17.33%	1.70%
Stock Yards Bancorp	24.83%	13.68%	1.51%

Analyst Recommendations

This is a breakdown of current recommendations for First BanCorp. and Stock Yards Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	4	0	2.67
Stock Yards Bancorp	0	4	2	0	2.33

First BanCorp. currently has a consensus target price of $24.75, indicating a potential upside of 8.93%. Stock Yards Bancorp has a consensus target price of $77.75, indicating a potential upside of 9.11%. Given Stock Yards Bancorp’s higher possible upside, analysts plainly believe Stock Yards Bancorp is more favorable than First BanCorp..

Insider & Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 56.5% of Stock Yards Bancorp shares are owned by institutional investors. 1.9% of First BanCorp. shares are owned by company insiders. Comparatively, 2.9% of Stock Yards Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

First BanCorp. beats Stock Yards Bancorp on 10 of the 17 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 Stock Yards Bancorp

Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States. It operates in two segments, Commercial Banking, and WM&T. The Commercial Banking segment offers a range of loan and deposit products to individual consumers and businesses in all its markets through retail lending, mortgage banking, deposit services, online banking, mobile banking, private banking, commercial lending, commercial real estate lending, leasing, treasury management services, merchant services, international banking, correspondent banking, and other banking services. This segment also provides securities brokerage services through an arrangement with a third party broker-dealer. The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations. It provides services in Louisville, central, eastern, and northern Kentucky, as well as Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The company was founded in 1904 and is headquartered in Louisville, Kentucky.