Arrow Financial Corporation versus First Bancorp Head to Head Compare

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This is a head to head compare of Arrow Financial Corporation (NASDAQ:AROW) and First Bancorp (NASDAQ:FBNC) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
AROW +13.5% +20.3% +44.2%
FBNC +37.6% +48.9% +51.1%

Arrow Financial Corporation has a higher fundamental rating than First Bancorp which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

First Bancorp has larger revenue in the last year than Arrow Financial Corporation. Raw revenue comps do not affect the head to head rating.

Both AROW and FBNC show positive earnings over the last year with the edge to AROW.

Net Income

AROW generates larger revenue per employee ($181,000) than FBNC ($172,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Arrow Financial Corporation generates $1.65 in revenue for every $1 of expense, very similar to First Bancorp's $1.54.

Revenue per Dollar of Expense

A nonperforming loan (NPL) is the sum of borrowed money upon which the debtor has not made his scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default (Source: INVESTOPEDIA).FBNC shows 2.27% if its loans are "non-performing", massively higher than AROW's 0.40%.

Non-performing Loans
over Total Loans

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. Arrow Financial Corporation is growing revenue faster than First Bancorp but not by a notable amount.

Revenue Growth

For every $1 in revenue, the stock market prices in $5.24 in market cap for AROW and $3.83 in market cap for FBNC.

Price to Sales

Arrow Financial Corporation (NASDAQ:AROW)
First Bancorp (NASDAQ:FBNC) : 54 to 46