Analyzing Farmers & Merchants Bancorp, Inc. (OH) (FMAO) & First Capital (FCAP)

Farmers & Merchants Bancorp, Inc. (OH) (NASDAQ:FMAO) and First Capital (NASDAQ:FCAP) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Farmers & Merchants Bancorp, Inc. (OH) pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. First Capital pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Farmers & Merchants Bancorp, Inc. (OH) pays out 40.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Farmers & Merchants Bancorp, Inc. (OH) and First Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmers & Merchants Bancorp, Inc. (OH) 0 1 0 0 2.00
First Capital 0 0 0 0 N/A

Volatility and Risk

Farmers & Merchants Bancorp, Inc. (OH) has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, First Capital has a beta of -0.22, suggesting that its share price is 122% less volatile than the S&P 500.

Insider and Institutional Ownership

15.7% of Farmers & Merchants Bancorp, Inc. (OH) shares are held by institutional investors. Comparatively, 4.6% of First Capital shares are held by institutional investors. 4.5% of Farmers & Merchants Bancorp, Inc. (OH) shares are held by insiders. Comparatively, 4.5% of First Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Farmers & Merchants Bancorp, Inc. (OH) and First Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmers & Merchants Bancorp, Inc. (OH) 27.06% 11.13% 1.37%
First Capital 24.09% 10.75% 1.12%

Earnings & Valuation

This table compares Farmers & Merchants Bancorp, Inc. (OH) and First Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmers & Merchants Bancorp, Inc. (OH) $51.98 million 7.33 $12.72 million $1.38 29.71
First Capital $33.12 million 4.01 $7.43 million N/A N/A

Farmers & Merchants Bancorp, Inc. (OH) has higher revenue and earnings than First Capital.

Summary

Farmers & Merchants Bancorp, Inc. (OH) beats First Capital on 9 of the 11 factors compared between the two stocks.

About Farmers & Merchants Bancorp, Inc. (OH)

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking accounts; savings and time deposits, including certificates of deposits; and custodial services for individual retirement accounts and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farm land, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvements loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as operation lines of credit and machinery purchase loans; and agricultural and consumer real estate, commercial and industrial, agricultural, and consumer loans, as well as industrial development bonds. Further, it provides automated teller machine services; and online banking, remote deposit capture or electronic deposit processing, merchant credit card, and mobile banking services. As of February 8, 2018, the company operated through 25 offices. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is based in Archbold, Ohio.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers a range of deposit instruments, including non-interest bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides real estate mortgage loans, such as fixed-rate and adjustable rate mortgage residential loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, and loans secured by savings deposits, as well as unsecured consumer loans. It provides its products and services through 18 locations in Indiana and Kentucky. First Capital, Inc. was founded in 1891 and is headquartered in Corydon, Indiana.

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