Critical Survey: Omni Financial Services (OTCMKTS:OFSI) versus First BanCorp. (NYSE:FBP)

First BanCorp. (NYSE:FBP) and Omni Financial Services (OTCMKTS:OFSI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Profitability

This table compares First BanCorp. and Omni Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	28.31%	17.51%	1.76%
Omni Financial Services	N/A	N/A	N/A

Valuation and Earnings

This table compares First BanCorp. and Omni Financial Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	3.18	$344.87 million	$2.25	11.45
Omni Financial Services	N/A	N/A	N/A	N/A	N/A

First BanCorp. has higher revenue and earnings than Omni Financial Services.

Volatility and Risk

First BanCorp. has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Omni Financial Services has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

97.9% of First BanCorp. shares are held by institutional investors. 1.9% of First BanCorp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for First BanCorp. and Omni Financial Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	3	2	3.00
Omni Financial Services	0	0	0	0	0.00

First BanCorp. currently has a consensus price target of $25.86, suggesting a potential upside of 0.37%. Given First BanCorp.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe First BanCorp. is more favorable than Omni Financial Services.

Summary

First BanCorp. beats Omni Financial Services on 10 of the 11 factors compared between the two stocks.

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.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.