Bank of Marin Bancorp (NASDAQ:BMRC) vs. First BanCorp. (NYSE:FBP) Head-To-Head Comparison

First BanCorp. (NYSE:FBP) and Bank of Marin Bancorp (NASDAQ:BMRC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares First BanCorp. and Bank of Marin 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.	$905.08 million	3.04	$298.72 million	$1.81	9.28
Bank of Marin Bancorp	$69.77 million	4.73	-$8.41 million	($0.52)	-39.37

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

Profitability

This table compares First BanCorp. and Bank of Marin Bancorp’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%
Bank of Marin Bancorp	-5.52%	3.33%	0.39%

Dividends

First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. First BanCorp. pays out 39.8% of its earnings in the form of a dividend. Bank of Marin Bancorp pays out -192.3% 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. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 52.3% of Bank of Marin Bancorp shares are owned by institutional investors. 2.5% of First BanCorp. shares are owned by company insiders. Comparatively, 5.7% of Bank of Marin Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First BanCorp. and Bank of Marin Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	3	0	2.60
Bank of Marin Bancorp	0	0	3	0	3.00

First BanCorp. currently has a consensus price target of $22.40, suggesting a potential upside of 33.36%. Bank of Marin Bancorp has a consensus price target of $28.00, suggesting a potential upside of 36.79%. Given Bank of Marin Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of Marin Bancorp is more favorable than First BanCorp..

Volatility and Risk

First BanCorp. has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Bank of Marin Bancorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

First BanCorp. beats Bank of Marin Bancorp on 9 of the 15 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 Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.