Bank First National (NASDAQ:BFC) and First Mid Bancshares (NASDAQ:FMBH) Financial Contrast

Bank First National (NASDAQ:BFC) and First Mid Bancshares (NASDAQ:FMBH) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Bank First National pays an annual dividend of $1.80 per share and has a dividend yield of 1.4%. First Mid Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Bank First National pays out 25.3% of its earnings in the form of a dividend. First Mid Bancshares pays out 27.4% 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. Bank First National has increased its dividend for 10 consecutive years and First Mid Bancshares has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

30.0% of Bank First National shares are owned by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are owned by institutional investors. 4.1% of Bank First National shares are owned by company insiders. Comparatively, 5.2% of First Mid Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Bank First National and First Mid Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank First National	29.34%	11.28%	1.60%
First Mid Bancshares	18.77%	10.27%	1.19%

Valuation and Earnings

This table compares Bank First National and First Mid Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank First National	$226.09 million	5.43	$65.56 million	$7.11	17.55
First Mid Bancshares	$453.67 million	1.97	$78.90 million	$3.65	10.20

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

Analyst Recommendations

This is a summary of recent recommendations for Bank First National and First Mid Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank First National	0	1	2	0	2.67
First Mid Bancshares	0	3	4	1	2.75

Bank First National currently has a consensus price target of $146.00, indicating a potential upside of 17.02%. First Mid Bancshares has a consensus price target of $43.17, indicating a potential upside of 15.91%. Given Bank First National’s higher probable upside, equities research analysts plainly believe Bank First National is more favorable than First Mid Bancshares.

Volatility and Risk

Bank First National has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

About Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

About First Mid Bancshares

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, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties 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; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. 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.