Analyzing Omni Financial Services (OTCMKTS:OFSI) and First Bancorp (NASDAQ:FBNC)

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

Institutional and Insider Ownership

68.4% of First Bancorp shares are owned by institutional investors. 2.0% of First Bancorp shares are owned by 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 Recommendations

This is a breakdown of current recommendations and price targets for Omni Financial Services and First Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omni Financial Services	0	0	0	0	0.00
First Bancorp	0	3	3	1	2.71

First Bancorp has a consensus price target of $62.95, suggesting a potential upside of 3.54%. Given First Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Bancorp is more favorable than Omni Financial Services.

Profitability

This table compares Omni Financial Services and First Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omni Financial Services	N/A	N/A	N/A
First Bancorp	20.59%	10.86%	1.38%

Risk & Volatility

Omni Financial Services has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Valuation & Earnings

This table compares Omni Financial Services and First Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omni Financial Services	N/A	N/A	N/A	N/A	N/A
First Bancorp	$400.42 million	6.28	$111.05 million	$2.93	20.75

First Bancorp has higher revenue and earnings than Omni Financial Services.

Summary

First Bancorp beats Omni Financial Services on 10 of the 11 factors compared between the two stocks.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.

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.