Financial Survey: First Business Financial Services (NASDAQ: FBIZ) and F & M Bank (OTCMKTS: FMBM)


First Business Financial Services (NASDAQ:FBIZ – Get Rating) and F&M Bank (OTCMKTS:FMBM – Get Rating) are both small cap finance companies, but which company is superior? We’ll compare the two companies based on their dividend strength, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Dividends

First Business Financial Services pays an annual dividend of $0.79 per share and has a dividend yield of 2.5%. F&M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. First Business Financial Services pays 19.5% of its profits as a dividend. F&M Bank distributes 37.8% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Business Financial Services has increased its dividend for 10 consecutive years.

Profitability

This table compares the net margins, return on equity and return on assets of First Business Financial Services and F&M Bank.

Net margins Return on equity return on assets
First business financial services 27.82% 15.21% 1.28%
M&M Bank 20.20% 9.93% 0.80%

Insider and Institutional Ownership

58.3% of First Business Financial Services shares are held by institutional investors. By comparison, 3.9% of F&M Bank’s shares are held by institutional investors. 6.1% of the shares of First Business Financial Services are held by insiders of the company. Comparatively, 8.6% of F&M Bank shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of First Business Financial Services and F&M Bank.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First business financial services $124.10 million 2.16 $35.76 million $4.05 7.82
M&M Bank $47.40 million 1.88 $10.74 million $2.75 9:30 am

First Business Financial Services has higher revenue and profit than F&M Bank. First Business Financial Services trades at a lower price-to-earnings ratio than F&M Bank, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a summary of current recommendations and price targets for First Business Financial Services and F&M Bank, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First business financial services 0 1 1 0 2.50
M&M Bank 0 0 0 0 N / A

First Business Financial Services currently has a consensus target price of $34.00, indicating a potential upside of 7.29%. Given the higher possible upside of First Business Financial Services, analysts clearly believe that First Business Financial Services is more favorable than F&M Bank.

Risk and Volatility

First Business Financial Services has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. In comparison, F&M Bank has a beta of 0.51, suggesting that the its share price is 49% less volatile than the S&P. 500.

Summary

First Business Financial Services beats F&M Bank on 13 out of 16 factors compared between the two stocks.

About First Business Financial Services

(Get an assessment)

First Business Financial Services, Inc. operates as a banking holding company for First Business Bank which provides commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The Company offers deposit products, such as non-interest bearing transaction accounts, interest bearing transaction accounts, money market accounts, term deposits and certificates of deposit, as well as credit cards. It also offers lending products, including commercial real estate loans, commercial and industrial loans, small business administration loans and direct finance leases, as well as consumer and other loans comprising the value net of property, first and second mortgages and other personal loans for business and executive clients. The company offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floor plan financing, cash management services and employee retirement plans. company ; trust and estate administration, financial planning, investment management and private banking; and investment portfolio administration, asset-liability management, and asset-liability management process validation services for other financial institutions. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin.

About F&M Bank

(Get an assessment)

F&M Bank Corp. operates as a bank holding company for Farmers & Merchants Bank which provides commercial banking services in Virginia. The Company offers commercial and individual cash and term deposit accounts, savings accounts, checking accounts, money market accounts, internet and mobile banking, and drive-thru banking. It also provides construction loans, including residential loans, as well as loans for land acquisition and development; commercial real estate loans; business loans; consumer loans, such as personal loans and lines of credit, auto loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgages; credit card; dealer financing; agricultural land loans; multi-family loans; and commercial and industrial loans. Additionally, the company offers brokerage services; and life, business and personal insurance products, as well as safe deposit boxes. Additionally, it issues conventional and government-sponsored mortgages; and title insurance and real estate settlement services. As of December 31, 2021, the company operated thirteen banking offices in Rockingham, Shenandoah, Page, and Augusta counties; and a loan origination office located in Penn Laird. F&M Bank Corp. was founded in 1908 and is headquartered in Timberville, Virginia.



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