Contrasting Royal Bank Of Canada (NYSE:RY) & First Bancorp, Inc (ME) (NASDAQ:FNLC)

First Bancorp, Inc (ME) (NASDAQ:FNLC) and Royal Bank Of Canada (NYSE:RY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares First Bancorp, Inc (ME) and Royal Bank Of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp, Inc (ME)	22.21%	13.70%	1.23%
Royal Bank Of Canada	16.17%	17.79%	0.97%

Earnings and Valuation

This table compares First Bancorp, Inc (ME) and Royal Bank Of Canada”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp, Inc (ME)	$104.33 million	3.93	$34.39 million	$3.51	10.36
Royal Bank Of Canada	$98.11 billion	2.86	$14.54 billion	$11.43	17.76

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

Dividends

First Bancorp, Inc (ME) pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. Royal Bank Of Canada pays an annual dividend of $4.95 per share and has a dividend yield of 2.4%. First Bancorp, Inc (ME) pays out 43.3% of its earnings in the form of a dividend. Royal Bank Of Canada pays out 43.3% 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 and Royal Bank Of Canada has increased its dividend for 15 consecutive years. First Bancorp, Inc (ME) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for First Bancorp, Inc (ME) and Royal Bank Of Canada, 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
Royal Bank Of Canada	0	5	7	1	2.69

Royal Bank Of Canada has a consensus target price of $225.00, suggesting a potential upside of 10.81%. Given Royal Bank Of Canada’s higher possible upside, analysts plainly believe Royal Bank Of Canada is more favorable than First Bancorp, Inc (ME).

Volatility and Risk

First Bancorp, Inc (ME) has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Royal Bank Of Canada has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Institutional & Insider Ownership

40.4% of First Bancorp, Inc (ME) shares are held by institutional investors. Comparatively, 45.3% of Royal Bank Of Canada shares are held by institutional investors. 5.1% of First Bancorp, Inc (ME) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Royal Bank Of Canada beats First Bancorp, Inc (ME) on 11 of the 18 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 Royal Bank Of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.