First Bank (NASDAQ:FRBA) and Princeton Bancorp (NASDAQ:BPRN) Financial Survey

First Bank (NASDAQ:FRBA) and Princeton Bancorp (NASDAQ:BPRN) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for First Bank and Princeton Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	1	1	2	0	2.25
Princeton Bancorp	0	2	1	1	2.75

First Bank currently has a consensus target price of $17.50, suggesting a potential upside of 1.69%. Princeton Bancorp has a consensus target price of $37.50, suggesting a potential upside of 0.42%. Given First Bank’s higher probable upside, equities research analysts plainly believe First Bank is more favorable than Princeton Bancorp.

Risk and Volatility

First Bank has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Princeton Bancorp has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

64.9% of First Bank shares are owned by institutional investors. Comparatively, 43.4% of Princeton Bancorp shares are owned by institutional investors. 13.1% of First Bank shares are owned by insiders. Comparatively, 23.1% of Princeton Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares First Bank and Princeton Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	1.76	$43.66 million	$1.67	10.31
Princeton Bancorp	$139.02 million	1.83	$18.61 million	$2.86	13.06

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bank	17.02%	9.60%	1.05%
Princeton Bancorp	14.20%	7.20%	0.86%

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Princeton Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. First Bank pays out 21.6% of its earnings in the form of a dividend. Princeton Bancorp pays out 49.0% 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.

Summary

First Bank beats Princeton Bancorp on 10 of the 17 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

About Princeton Bancorp

Princeton Bancorp, Inc. operates as the bank holding company for The Bank of Princeton that provides various banking products and services. It accepts various deposit products, including checking, savings, attorney trust, and money market accounts, as well as certificates of deposit. The company also offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, and commercial business loans, as well as consumer loans, including home equity loans and lines of credit. In addition, it provides debit and credit cards, and money orders, direct deposit, automated teller machines, cashier's checks, safe deposit boxes, online banking, wire transfers, night depository, remote deposit capture, bank-by-mail, online, and automated telephone banking services, as well as payroll-related services and merchant credit card processing services. Further, the company offers full on-line statements, on-line bill payment, account inquiries, mobile banking, transaction histories and details, and account-to-account transfer services. Princeton Bancorp, Inc. was founded in 2007 and is headquartered in Princeton, New Jersey.