Critical Comparison: Auburn National Bancorporation (NASDAQ:AUBN) and First Bancorp, Inc (ME) (NASDAQ:FNLC)

First Bancorp, Inc (ME) (NASDAQ:FNLC) and Auburn National Bancorporation (NASDAQ:AUBN) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

First Bancorp, Inc (ME) has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Institutional and Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are held by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Comparatively, 18.7% of Auburn National Bancorporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.3%. Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 3.9%. First Bancorp, Inc (ME) pays out 45.1% of its earnings in the form of a dividend. Auburn National Bancorporation pays out 44.8% 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. First Bancorp, Inc (ME) has increased its dividend for 6 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares First Bancorp, Inc (ME) and Auburn National Bancorporation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$177.61 million	2.23	$34.39 million	$3.37	10.44
Auburn National Bancorporation	$34.26 million	2.80	$7.26 million	$2.41	11.41

First Bancorp, Inc (ME) has higher revenue and earnings than Auburn National Bancorporation. First Bancorp, Inc (ME) is trading at a lower price-to-earnings ratio than Auburn National Bancorporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Bancorp, Inc (ME) and Auburn National Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp, Inc (ME)	0	0	1	0	3.00
Auburn National Bancorporation	0	1	0	0	2.00

Profitability

This table compares First Bancorp, Inc (ME) and Auburn National Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	21.43%	13.30%	1.18%
Auburn National Bancorporation	18.60%	9.10%	0.81%

Summary

First Bancorp, Inc (ME) beats Auburn National Bancorporation on 12 of the 16 factors compared between the two stocks.

About First Bancorp, Inc (ME)

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, time, savings, money market, and certificates of deposit accounts. The company also provides commercial loans comprising commercial real estate owner occupied, such as mortgage loans to finance investments in real property such as retail space, offices, industrial buildings, hotels, educational facilities, and other specific or mixed use properties; commercial real estate non-owner occupied loans; commercial construction to finance construction in a mix of owner- and nonowner occupied commercial real estate properties; and commercial and industrial loans, including revolving and term loan for financing working capital and/or capital investment. In addition, it offers commercial multifamily loans; residential real estate term and residential real estate construction loans; loans to municipalities in Maine for capitalized expenditures, construction projects, or tax anticipation notes; home equity revolving and term loans; and personal lines of credit and amortizing loans for various purposes, such as autos, recreational vehicles, debt consolidation, personal expenses, or overdraft protection. Further, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations and municipalities; and brokerage, annuity, and various insurance products, as well as payment processing services. It operates through full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.