Farmers & Merchants Bancorp (NASDAQ: FMAO) is one of 344 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Farmers & Merchants Bancorp to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Risk and Volatility
Farmers & Merchants Bancorp has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bancorp’s rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.
Farmers & Merchants Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. Farmers & Merchants Bancorp pays out 38.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.4% of their earnings in the form of a dividend. Farmers & Merchants Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
This is a summary of current ratings for Farmers & Merchants Bancorp and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Farmers & Merchants Bancorp||0||1||0||0||2.00|
|Farmers & Merchants Bancorp Competitors||2104||8328||8412||324||2.36|
As a group, “Banks” companies have a potential downside of 8.06%. Given Farmers & Merchants Bancorp’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Farmers & Merchants Bancorp has less favorable growth aspects than its rivals.
This table compares Farmers & Merchants Bancorp and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Farmers & Merchants Bancorp||24.46%||9.65%||1.17%|
|Farmers & Merchants Bancorp Competitors||18.83%||8.78%||0.93%|
Insider and Institutional Ownership
4.3% of Farmers & Merchants Bancorp shares are owned by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are owned by institutional investors. 5.0% of Farmers & Merchants Bancorp shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Farmers & Merchants Bancorp and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Farmers & Merchants Bancorp||$49.10 million||$11.66 million||27.46|
|Farmers & Merchants Bancorp Competitors||$5.42 billion||$809.95 million||352.35|
Farmers & Merchants Bancorp’s rivals have higher revenue and earnings than Farmers & Merchants Bancorp. Farmers & Merchants Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Farmers & Merchants Bancorp rivals beat Farmers & Merchants Bancorp on 12 of the 15 factors compared.
Farmers & Merchants Bancorp Company Profile
Farmers & Merchants Bancorp, Inc. is a bank holding company. The Company’s primary subsidiary, The Farmers & Merchants State Bank (the Bank), is a community bank operating in Northwest Ohio and Northeast Indiana. The Company’s other subsidiary, Farmers & Merchants Risk Management (Captive), is a captive insurance company. The Bank is engaged in general commercial banking business. The Bank’s activities include commercial, agricultural and residential mortgage as well as consumer and credit card lending activities. The Bank’s loan portfolio consists of loans made to customers in the farming industry for such things as farm land, farm equipment, livestock and operating loans for seed, fertilizer and feed. Its other types of lending activities include loans for home improvements and loans for such items as autos, trucks, recreational vehicles and motorcycles. The Bank also provides checking account services, as well as savings and time deposit services, such as certificates of deposits.
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