Comparing First Bancorp (NASDAQ:FBNC) & Chemung Financial (NASDAQ:CHMG)

Chemung Financial (NASDAQ:CHMG) and First Bancorp (NASDAQ:FBNC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Dividends

Chemung Financial pays an annual dividend of $1.36 per share and has a dividend yield of 2.5%. First Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Chemung Financial pays out 49.1% of its earnings in the form of a dividend. First Bancorp pays out 38.7% 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. Chemung Financial has raised its dividend for 1 consecutive years. Chemung Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

47.5% of Chemung Financial shares are held by institutional investors. Comparatively, 68.4% of First Bancorp shares are held by institutional investors. 12.4% of Chemung Financial shares are held by insiders. Comparatively, 3.7% of First Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Chemung Financial and First Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemung Financial	$150.79 million	1.70	$23.67 million	$2.77	19.37
First Bancorp	$537.14 million	4.06	$76.21 million	$2.38	22.08

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Chemung Financial and First Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemung Financial	1	3	0	0	1.75
First Bancorp	0	4	2	1	2.57

Chemung Financial presently has a consensus target price of $54.50, suggesting a potential upside of 1.58%. First Bancorp has a consensus target price of $58.00, suggesting a potential upside of 10.39%. Given First Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe First Bancorp is more favorable than Chemung Financial.

Risk & Volatility

Chemung Financial has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chemung Financial	9.58%	11.28%	0.94%
First Bancorp	17.50%	9.61%	1.18%

Summary

First Bancorp beats Chemung Financial on 13 of the 18 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

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.