First BanCorp vs Palomar

This page compares First BanCorp and Palomar, examining their business models, financial performance, and market context. It presents an accessible overview to help readers understand how each organisation operates, generates value, and positions itself in the market. The analysis remains neutral and factual, inviting further independent evaluation. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FBP

Metric

PLMR

$3.32B

Market Cap

$3.46B

9.45%

Potential Profit

23.54%

Buy

Analyst Rating

Buy

Investment Analysis

First BanCorp

FBP

Pros

First BanCorp has a diversified revenue stream across consumer, commercial, mortgage, treasury, US, and Virgin Islands operations, reducing reliance on a single market.
The company displays strong profitability with a normalized return on equity of approximately 18.6%, indicating efficient use of shareholder capital.
Recent management actions include a $200 million stock repurchase program alongside consistent quarterly dividends, demonstrating capital return discipline.

Considerations

Revenue growth is modest, with only about 1.9% increase year-over-year, and a slight earnings decline of approximately 1.4%, indicating limited near-term growth momentum.
The bank derives a significant portion of revenue from Puerto Rico, exposing it to geographic concentration risk and local economic volatility.
Price-to-earnings ratios around 10 to 11 suggest the stock may have limited valuation upside relative to growth prospects.

Palomar

PLMR

Pros

Palomar Holdings operates as a specialty insurance holding company with a portfolio of niche insurance businesses, allowing focused market expertise.
Recent expansion through acquisitions has diversified Palomar's business lines and underwriting portfolio, supporting medium-term growth potential.
Strong underwriting discipline has led to improved combined ratios and profitability, reflecting operational efficiency in risk management.

Considerations

Palomar's specialty insurance focus exposes it to underwriting cycle risks and potential losses during adverse claims periods.
The company has moderate leverage and sensitivity to interest rate fluctuations, which can impact investment income and financial stability.
Competition in specialty insurance markets is intense, creating pricing pressures that may limit margin expansion.

About The Companies

First BanCorp (FBP)

First BanCorp is a financial holding company operating primarily through its main subsidiary, FirstBank Puerto Rico. It serves a diverse clientele, including small to mid-sized businesses and individual consumers. The company's operations are organised into several segments: Commercial and Corporate Banking, Consumer (Retail) Banking, and Mortgage Banking. It also manages Treasury and Investments. Geographically, First BanCorp has a significant presence not only in Puerto Rico but also through its United States Operations on the mainland and its Virgin Islands Operations, which cover both the U.S. and British Virgin Islands. This structure allows it to offer a comprehensive range of financial services across key Caribbean and U.S. markets. As with any investment, the value can go down as well as up, and returns are not guaranteed. This information is for educational purposes and not financial advice.

Palomar (PLMR)

Palomar Holdings Inc (PLMR) is a specialty property & casualty insurance holding company with a market capitalisation of about $3.09 billion. It writes niche commercial and specialty personal lines through multiple distribution channels and emphasises underwriting discipline and risk selection. Revenue depends on premium growth, pricing adequacy and claims experience; investment income and capital management also influence profitability. Key metrics investors commonly watch include the combined ratio, loss reserve development and growth in written and earned premium. The company faces typical insurance-sector risks such as catastrophe exposure, adverse loss development, interest-rate sensitivity and regulatory scrutiny. Palomar may pursue capital actions or reinsurance to manage volatility and support growth. This summary is educational, not personal financial advice: potential investors should review Palomar’s regulatory filings, recent results and their own risk tolerance before acting. Performance can vary and past results do not guarantee future returns.

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Comparison Snapshot