Head-To-Head Analysis: Bank of N.T. Butterfield & Son (NTB) vs. First Mid-Illinois Bancshares (FMBH)
Bank of N.T. Butterfield & Son (NYSE: NTB) and First Mid-Illinois Bancshares (NASDAQ:FMBH) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Valuation and Earnings
This table compares Bank of N.T. Butterfield & Son and First Mid-Illinois Bancshares’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank of N.T. Butterfield & Son||$424.66 million||5.06||$115.94 million||$1.85||21.27|
|First Mid-Illinois Bancshares||$129.89 million||3.47||$26.68 million||$2.13||16.70|
Volatility & Risk
Bank of N.T. Butterfield & Son has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, First Mid-Illinois Bancshares has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.
Bank of N.T. Butterfield & Son pays an annual dividend of $1.28 per share and has a dividend yield of 3.3%. First Mid-Illinois Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. Bank of N.T. Butterfield & Son pays out 69.2% of its earnings in the form of a dividend. First Mid-Illinois Bancshares pays out 31.9% 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
73.8% of Bank of N.T. Butterfield & Son shares are owned by institutional investors. Comparatively, 21.1% of First Mid-Illinois Bancshares shares are owned by institutional investors. 20.3% of First Mid-Illinois Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for Bank of N.T. Butterfield & Son and First Mid-Illinois Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of N.T. Butterfield & Son||0||1||2||0||2.67|
|First Mid-Illinois Bancshares||0||0||1||0||3.00|
Bank of N.T. Butterfield & Son presently has a consensus price target of $39.33, indicating a potential downside of 0.04%. First Mid-Illinois Bancshares has a consensus price target of $37.00, indicating a potential upside of 4.02%. Given First Mid-Illinois Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe First Mid-Illinois Bancshares is more favorable than Bank of N.T. Butterfield & Son.
This table compares Bank of N.T. Butterfield & Son and First Mid-Illinois Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of N.T. Butterfield & Son||22.83%||19.90%||1.39%|
|First Mid-Illinois Bancshares||20.54%||9.33%||0.99%|
Bank of N.T. Butterfield & Son beats First Mid-Illinois Bancshares on 11 of the 16 factors compared between the two stocks.
Bank of N.T. Butterfield & Son Company Profile
The Bank of N.T. Butterfield & Son Limited (the Bank) provides banking services and wealth management services. The Bank’s geographic segments include Bermuda, the Cayman Islands and Guernsey, where its banking operations are located, and The Bahamas, Switzerland, and the United Kingdom, where it offers specialized financial services. It offers banking services, including retail and corporate banking, and wealth management, which consists of trust, private banking, and asset management. In Bermuda and Cayman Islands segments, it offers both banking and wealth management. In Guernsey, Bahamas, and Switzerland segments, it offers wealth management. In the United Kingdom segment, it offers residential property lending. The Bank provides foreign exchange services in the normal course of business in all jurisdictions. Its wealth management platform has three lines of business: trust, private banking, and asset management.
First Mid-Illinois Bancshares Company Profile
First Mid-Illinois Bancshares, Inc. is a financial holding company. The Company is engaged in the business of banking through its subsidiaries, First Mid-Illinois Bank & Trust, N.A. (First Mid Bank) and First Clover Leaf Bank, N.A. (First Clover Leaf Bank). The Company provides data processing services to affiliates through another subsidiary, Mid-Illinois Data Services, Inc. (MIDS). The Company offers insurance products and services to customers through its subsidiary, The Checkley Agency, Inc., doing business as First Mid Insurance Group (First Mid Insurance). The Company also owns three statutory business trusts, First Mid-Illinois Statutory Trust I (First Mid Trust I), and First Mid-Illinois Statutory Trust II (First Mid Trust II), and Clover Leaf Statutory Trust I (CLST Trust). As of December 31, 2016, the Company operated in three primary lines of business: community banking, wealth management, and insurance brokerage.
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