Analyzing Ohio Valley Banc (NASDAQ:OVBC) and First BanCorp. (NYSE:FBP)

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

Earnings & Valuation

This table compares Ohio Valley Banc and First BanCorp.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ohio Valley Banc	$61.98 million	2.74	$11.00 million	$2.68	13.44
First BanCorp.	$920.41 million	3.48	$298.72 million	$1.84	10.66

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

Analyst Recommendations

This is a breakdown of current recommendations for Ohio Valley Banc and First BanCorp., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ohio Valley Banc	0	0	0	0	0.00
First BanCorp.	0	1	4	0	2.80

First BanCorp. has a consensus price target of $22.80, suggesting a potential upside of 16.21%. Given First BanCorp.’s stronger consensus rating and higher probable upside, analysts plainly believe First BanCorp. is more favorable than Ohio Valley Banc.

Institutional & Insider Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. Comparatively, 97.9% of First BanCorp. shares are held by institutional investors. 7.1% of Ohio Valley Banc shares are held by insiders. Comparatively, 2.3% of First BanCorp. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ohio Valley Banc	12.37%	7.44%	0.77%
First BanCorp.	24.37%	18.89%	1.58%

Dividends

Ohio Valley Banc pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. First BanCorp. pays an annual dividend of $0.72 per share and has a dividend yield of 3.7%. Ohio Valley Banc pays out 34.3% of its earnings in the form of a dividend. First BanCorp. pays out 39.1% 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.

Volatility & Risk

Ohio Valley Banc has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

First BanCorp. beats Ohio Valley Banc on 12 of the 16 factors compared between the two stocks.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.

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.