Comparing First BanCorp. (NYSE:FBP) & Popular (NASDAQ:BPOP)

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

Institutional and Insider Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 87.3% of Popular shares are owned by institutional investors. 2.5% of First BanCorp. shares are owned by insiders. Comparatively, 2.1% of Popular shares are owned 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.

Volatility & Risk

First BanCorp. has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Popular has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	24.37%	18.89%	1.58%
Popular	14.15%	11.89%	0.90%

Earnings and Valuation

This table compares First BanCorp. and Popular”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$905.08 million	3.17	$298.72 million	$1.81	9.67
Popular	$2.80 billion	2.22	$612.80 million	$8.56	10.19

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

Analyst Ratings

This is a breakdown of recent ratings for First BanCorp. and Popular, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	3	0	2.60
Popular	0	2	6	0	2.75

First BanCorp. presently has a consensus price target of $22.40, suggesting a potential upside of 27.96%. Popular has a consensus price target of $112.25, suggesting a potential upside of 28.64%. Given Popular’s stronger consensus rating and higher possible upside, analysts clearly believe Popular is more favorable than First BanCorp..

Dividends

First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Popular pays an annual dividend of $2.80 per share and has a dividend yield of 3.2%. First BanCorp. pays out 39.8% of its earnings in the form of a dividend. Popular pays out 32.7% 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.

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 Popular

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.