First BanCorp. (NYSE:FBP) and Pioneer Bancorp (NASDAQ:PBFS) Critical Comparison

Pioneer Bancorp (NASDAQ:PBFS) and First BanCorp. (NYSE:FBP) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pioneer Bancorp	N/A	4.05%	0.58%
First BanCorp.	29.24%	18.03%	1.84%

Insider and Institutional Ownership

97.9% of First BanCorp. shares are held by institutional investors. 2.8% of Pioneer Bancorp shares are held by company insiders. Comparatively, 1.9% of First BanCorp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Pioneer Bancorp has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, First BanCorp. has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Pioneer Bancorp and First BanCorp., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bancorp	0	0	1	0	3.00
First BanCorp.	0	2	3	4	3.22

First BanCorp. has a consensus target price of $29.38, indicating a potential upside of 6.66%. Given First BanCorp.’s stronger consensus rating and higher probable upside, analysts plainly believe First BanCorp. is more favorable than Pioneer Bancorp.

Valuation and Earnings

This table compares Pioneer Bancorp and First BanCorp.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bancorp	$104.65 million	4.28	$13.41 million	$0.54	33.42
First BanCorp.	$1.26 billion	3.35	$344.87 million	$2.37	11.62

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

Summary

First BanCorp. beats Pioneer Bancorp on 12 of the 15 factors compared between the two stocks.

About Pioneer Bancorp

Pioneer Bancorp, Inc. operates as a holding company for Pioneer Savings Bank that provides various banking products and services in New York. The company accepts various deposit products, such as demand, savings, and money market accounts, as well as certificates of deposit accounts. Its loan products include commercial real estate, commercial and industrial, commercial construction, residential mortgage lending, consumer loans, and home equity lines of credit. The company also invests in the U.S. governmental securities, fixed rate collateralized mortgage obligations, mortgage-backed securities, fixed-rate investment grade bonds, and equity securities. In addition, the company offers personal and commercial insurance products, including homeowners, automobile, and comprehensive business insurance; employee benefit products and services, such as group health, dental, disability, and life insurance products, as well as defined contribution, defined benefit administration, and human resource management services; and wealth management services comprising investment advice, retirement income planning, estate planning, business succession, and employer retirement planning. The company was founded in 1889 and is based in Albany, New York. Pioneer Bancorp, Inc. operates as a subsidiary of Pioneer Bancorp, MHC.

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.