Reviewing First Midwest Bancorp (FMBI) & Its Peers

First Midwest Bancorp (NASDAQ: FMBI) is one of 307 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare First Midwest Bancorp to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Dividends

First Midwest Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. First Midwest Bancorp pays out 33.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.7% of their earnings in the form of a dividend.

Volatility and Risk

First Midwest Bancorp has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, First Midwest Bancorp’s competitors have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

81.4% of First Midwest Bancorp shares are held by institutional investors. Comparatively, 52.3% of shares of all “Banks” companies are held by institutional investors. 1.7% of First Midwest Bancorp shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares First Midwest Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Midwest Bancorp 18.08% 7.89% 1.00%
First Midwest Bancorp Competitors 18.58% 8.32% 0.94%

Analyst Recommendations

This is a breakdown of current ratings for First Midwest Bancorp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Midwest Bancorp 0 2 3 0 2.60
First Midwest Bancorp Competitors 2155 8298 8407 332 2.36

First Midwest Bancorp presently has a consensus target price of $25.80, suggesting a potential upside of 4.88%. As a group, “Banks” companies have a potential downside of 5.64%. Given First Midwest Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Midwest Bancorp is more favorable than its competitors.

Earnings & Valuation

This table compares First Midwest Bancorp and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
First Midwest Bancorp $537.64 million $92.34 million 20.67
First Midwest Bancorp Competitors $5.50 billion $825.32 million 371.01

First Midwest Bancorp’s competitors have higher revenue and earnings than First Midwest Bancorp. First Midwest Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

First Midwest Bancorp competitors beat First Midwest Bancorp on 8 of the 15 factors compared.

About First Midwest Bancorp

First Midwest Bancorp, Inc. is a bank holding company. The Company’s principal subsidiary, First Midwest Bank (the Bank), is an Illinois state-chartered bank and provides a range of banking, treasury and wealth management products and services, to commercial and industrial, commercial real estate, municipal and consumer customers. As of December 31, 2016, the Bank operated primarily throughout the Chicago metropolitan area, as well as northwest Indiana, central and western Illinois, and eastern Iowa through 117 banking locations. The Bank offers capital market products to commercial customers as risk management solutions, which include derivatives and interest rate risk products. The Bank provides an array of financing products to developers, investors and other real estate professionals, which include funding for the construction, purchase, refinance or improvement of commercial real estate properties. The Company’s loan portfolio consists of both corporate and consumer loans.

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