Contrasting Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) and NatWest Group (NYSE:NWG)

Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBLGet Free Report) and NatWest Group (NYSE:NWGGet Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Profitability

This table compares Farmers & Merchants Bank of Long Beach and NatWest Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmers & Merchants Bank of Long Beach 22.94% 7.05% 0.77%
NatWest Group 21.11% 10.86% 0.53%

Earnings and Valuation

This table compares Farmers & Merchants Bank of Long Beach and NatWest Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmers & Merchants Bank of Long Beach $358.80 million 1.56 $109.00 million $725.05 6.27
NatWest Group $14.83 billion 1.84 $4.44 billion $0.94 6.36

NatWest Group has higher revenue and earnings than Farmers & Merchants Bank of Long Beach. Farmers & Merchants Bank of Long Beach is trading at a lower price-to-earnings ratio than NatWest Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Farmers & Merchants Bank of Long Beach has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, NatWest Group has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Farmers & Merchants Bank of Long Beach and NatWest Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmers & Merchants Bank of Long Beach 0 0 0 0 N/A
NatWest Group 1 3 0 0 1.75

NatWest Group has a consensus target price of $6.24, suggesting a potential upside of 4.36%. Given NatWest Group’s higher possible upside, analysts plainly believe NatWest Group is more favorable than Farmers & Merchants Bank of Long Beach.

Dividends

Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 2.5%. NatWest Group pays an annual dividend of $0.27 per share and has a dividend yield of 4.5%. Farmers & Merchants Bank of Long Beach pays out 15.4% of its earnings in the form of a dividend. NatWest Group pays out 28.7% 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 & Insider Ownership

7.8% of Farmers & Merchants Bank of Long Beach shares are held by institutional investors. Comparatively, 1.0% of NatWest Group shares are held by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

NatWest Group beats Farmers & Merchants Bank of Long Beach on 8 of the 14 factors compared between the two stocks.

About Farmers & Merchants Bank of Long Beach

(Get Free Report)

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was incorporated in 1907 and is headquartered in Long Beach, California.

About NatWest Group

(Get Free Report)

NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, and Commercial & Institutional segments. The Retail Banking segment offers a range of banking products and related financial services, such as current accounts, mortgages, personal unsecured lending, and personal deposits, as well as mobile and online banking services. The Private Banking segment provides private banking and wealth management products for high-net-worth individuals and their business interests. The Commercial & Institutional segment offers banking and financial solutions to large corporate organisations, multi-nationals, and financial institutions. The company was formerly known as The Royal Bank of Scotland Group plc and changed its name to NatWest Group plc in July 2020. NatWest Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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