F & M Bank (OTCMKTS:FMBM) versus FB Financial (NYSE:FBK) Head-To-Head Comparison

F & M Bank (OTCMKTS:FMBM) and FB Financial (NYSE:FBK) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Institutional & Insider Ownership

3.9% of F & M Bank shares are owned by institutional investors. Comparatively, 65.4% of FB Financial shares are owned by institutional investors. 11.6% of F & M Bank shares are owned by insiders. Comparatively, 1.9% of FB Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for F & M Bank and FB Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F & M Bank	0	0	0	0	0.00
FB Financial	0	2	4	0	2.67

FB Financial has a consensus price target of $61.20, suggesting a potential upside of 12.56%. Given FB Financial’s stronger consensus rating and higher possible upside, analysts plainly believe FB Financial is more favorable than F & M Bank.

Volatility and Risk

F & M Bank has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, FB Financial has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares F & M Bank and FB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F & M Bank	14.23%	11.72%	0.85%
FB Financial	13.07%	11.21%	1.36%

Dividends

F & M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 3.3%. FB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. F & M Bank pays out 32.8% of its earnings in the form of a dividend. FB Financial pays out 35.0% 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. FB Financial has increased its dividend for 8 consecutive years. F & M Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares F & M Bank and FB Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F & M Bank	$78.92 million	1.43	$11.23 million	$3.17	9.97
FB Financial	$877.84 million	3.31	$122.62 million	$2.40	22.66

FB Financial has higher revenue and earnings than F & M Bank. F & M Bank is trading at a lower price-to-earnings ratio than FB Financial, indicating that it is currently the more affordable of the two stocks.

Summary

FB Financial beats F & M Bank on 11 of the 17 factors compared between the two stocks.

About F & M Bank

F & M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides financial products and services to consumers and businesses in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, money market accounts, internet and mobile banking services, and drive-in banking services. It also provides construction loans, including residential, and land acquisition and development loans; commercial real estate loans; business loans; consumer loans, such as personal loans, automobile loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgage loans; credit cards; dealer finance; farmland loans; multi-family loans; and commercial and industrial loans. In addition, the company offers brokerage services and commercial and personal insurance products. Further, it originates conventional and government agency sponsored mortgages; and offers title insurance and real estate settlement services. The company was founded in 1908 and is headquartered in Timberville, Virginia.

About FB Financial

FB Financial Corporation operates as a bank holding company for FirstBank that provides a suite of commercial and consumer banking services to businesses, professionals, and individuals. The company operates in segments, such as Banking and Mortgage. It offers checking, demand, money market, and savings accounts; deposit and lending products and services to corporate, commercial, and consumer customers; and time deposits and certificates of deposits, as well as residential mortgage loans. The company also provides owner-occupied and non-owner-occupied real estate commercial, residential real estate 1-4 family mortgage, multi-family residential, commercial and industrial, construction, land acquisition, residential lines of credit, and land development loans; and consumer and other loans, such as car, boat, and other recreational vehicle loans, as well as manufactured homes without real estate and personal lines of credit. In addition, the company offers mortgage banking services through its bank branch network and mortgage banking offices in the southeastern United States; direct-to-consumer internet delivery channel; and trust, insurance, and investment services, as well as online and mobile banking services. The company operates full-service bank branches and limited-service branches locations throughout Tennessee, Nashville, Chattanooga, Knoxville, Memphis, Jackson, Birmingham, Florence, Huntsville, Alabama, Bowling Green, and Kentucky; and mortgage offices throughout the southeastern United States. The company was formerly known as First South Bancorp, Inc. and changed its name to FB Financial Corporation in 2016. FB Financial Corporation was founded in 1906 and is headquartered in Nashville, Tennessee.