Head-To-Head Contrast: First Mid Bancshares (NASDAQ:FMBH) and Five Star Bancorp (NASDAQ:FSBC)

First Mid Bancshares (NASDAQ:FMBHGet Rating) and Five Star Bancorp (NASDAQ:FSBCGet Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for First Mid Bancshares and Five Star Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Mid Bancshares 0 0 0 0 N/A
Five Star Bancorp 0 0 3 0 3.00

Five Star Bancorp has a consensus target price of $29.67, suggesting a potential upside of 7.76%. Given Five Star Bancorp’s higher possible upside, analysts plainly believe Five Star Bancorp is more favorable than First Mid Bancshares.

Dividends

First Mid Bancshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. Five Star Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. First Mid Bancshares pays out 30.8% of its earnings in the form of a dividend. Five Star Bancorp pays out 20.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

35.6% of First Mid Bancshares shares are owned by institutional investors. Comparatively, 34.1% of Five Star Bancorp shares are owned by institutional investors. 9.6% of First Mid Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares First Mid Bancshares and Five Star Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Mid Bancshares $252.78 million 3.10 $51.49 million $2.86 13.40
Five Star Bancorp $88.86 million 5.34 $42.44 million $2.90 9.49

First Mid Bancshares has higher revenue and earnings than Five Star Bancorp. Five Star Bancorp is trading at a lower price-to-earnings ratio than First Mid Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Mid Bancshares and Five Star Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Mid Bancshares 20.31% 11.26% 1.18%
Five Star Bancorp 47.76% 20.92% 1.79%

Summary

Five Star Bancorp beats First Mid Bancshares on 8 of the 14 factors compared between the two stocks.

First Mid Bancshares Company Profile (Get Rating)

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company's loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; and employee benefit services for business enterprises. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. It operates through a network of 52 banking centers in Illinois and 14 offices in Missouri, as well as a loan production office in Indiana. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.

Five Star Bancorp Company Profile (Get Rating)

Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals. The company accepts various deposits, such as money market, noninterest-bearing and interest checking accounts, savings accounts, and time deposits. Its loan products include commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans. The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. It operates through seven branch offices and two loan production offices in Northern California. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.

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