First Midwest Bancorp (NASDAQ: FMBI) is one of 308 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare First Midwest Bancorp to similar businesses based on the strength of its dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Valuation and Earnings

This table compares First Midwest Bancorp and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
First Midwest Bancorp $537.64 million $92.34 million 20.68
First Midwest Bancorp Competitors $5.49 billion $825.32 million 363.96

First Midwest Bancorp’s peers have higher revenue and earnings than First Midwest Bancorp. First Midwest Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

First Midwest Bancorp has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, First Midwest Bancorp’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Dividends

First Midwest Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. First Midwest Bancorp pays out 33.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.2% of their earnings in the form of a dividend.

Insider and Institutional Ownership

81.4% of First Midwest Bancorp shares are held by institutional investors. Comparatively, 52.3% of shares of all “Banks” companies are held by institutional investors. 1.7% of First Midwest Bancorp shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for First Midwest Bancorp and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Midwest Bancorp 0 2 3 0 2.60
First Midwest Bancorp Competitors 2112 8277 8412 332 2.36

First Midwest Bancorp presently has a consensus target price of $25.80, indicating a potential upside of 4.84%. As a group, “Banks” companies have a potential downside of 8.28%. Given First Midwest Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe First Midwest Bancorp is more favorable than its peers.

Profitability

This table compares First Midwest Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Midwest Bancorp 18.08% 7.89% 1.00%
First Midwest Bancorp Competitors 18.50% 8.37% 0.94%

Summary

First Midwest Bancorp peers beat First Midwest Bancorp on 8 of the 15 factors compared.

First Midwest Bancorp Company Profile

First Midwest Bancorp, Inc. is a bank holding company. The Company’s principal subsidiary, First Midwest Bank (the Bank), is an Illinois state-chartered bank and provides a range of banking, treasury and wealth management products and services, to commercial and industrial, commercial real estate, municipal and consumer customers. As of December 31, 2016, the Bank operated primarily throughout the Chicago metropolitan area, as well as northwest Indiana, central and western Illinois, and eastern Iowa through 117 banking locations. The Bank offers capital market products to commercial customers as risk management solutions, which include derivatives and interest rate risk products. The Bank provides an array of financing products to developers, investors and other real estate professionals, which include funding for the construction, purchase, refinance or improvement of commercial real estate properties. The Company’s loan portfolio consists of both corporate and consumer loans.

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