Financial Comparison: Southern First Bancshares (NASDAQ:SFST) & First Bancorp (NASDAQ:FBNC)

First Bancorp (NASDAQ:FBNC) and Southern First Bancshares (NASDAQ:SFST) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk & Volatility

First Bancorp has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Southern First Bancshares has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Bancorp and Southern First Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp	$549.30 million	4.01	$111.05 million	$2.68	19.82
Southern First Bancshares	$224.62 million	1.91	$30.37 million	$3.74	13.96

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

Insider and Institutional Ownership

68.4% of First Bancorp shares are held by institutional investors. Comparatively, 75.0% of Southern First Bancshares shares are held by institutional investors. 1.8% of First Bancorp shares are held by insiders. Comparatively, 7.1% of Southern First Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Bancorp and Southern First Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp	19.24%	10.41%	1.30%
Southern First Bancshares	13.52%	8.63%	0.70%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Bancorp and Southern First Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp	0	3	2	1	2.67
Southern First Bancshares	0	2	1	0	2.33

First Bancorp currently has a consensus price target of $61.25, suggesting a potential upside of 15.33%. Southern First Bancshares has a consensus price target of $64.00, suggesting a potential upside of 22.61%. Given Southern First Bancshares’ higher probable upside, analysts plainly believe Southern First Bancshares is more favorable than First Bancorp.

Summary

First Bancorp beats Southern First Bancshares on 11 of the 15 factors compared between the two stocks.

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.

About Southern First Bancshares

Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.