Farmers & Merchants Bancorp (NASDAQ:FMAO – Get Rating) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL – Get Rating) are both small cap finance companies, but which company is superior? We’ll compare the two companies based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings, and analyst recommendations.
Dividends
Farmers & Merchants Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 2.1%. Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Farmers & Merchants Bancorp pays 34.9% of its profits as a dividend. Home Federal Bancorp, Inc. of Louisiana pays 27.4% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Farmers & Merchants Bancorp has increased its dividend for 7 consecutive years and Home Federal Bancorp, Inc. of Louisiana has increased its dividend for 8 consecutive years.
Benefits and evaluation
This table compares the gross revenue, earnings per share, and valuation of Farmers & Merchants Bancorp and Home Federal Bancorp, Inc. of Louisiana.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Bancorp Farmers and Merchants | $94.45 million | 4.98 | $23.50 million | $2.18 | 16.52 |
| Home Federal Bancorp, Inc. of Louisiana | $25.70 million | 2.54 | $5.36 million | $1.46 | 13.19 |
Farmers & Merchants Bancorp has higher revenues and profits than Home Federal Bancorp, Inc. of Louisiana. Home Federal Bancorp, Inc. of Louisiana trades at a lower price-to-earnings ratio than Farmers & Merchants Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Notes
This is a breakdown of recent recommendations and price targets for Farmers & Merchants Bancorp and Home Federal Bancorp, Inc. of Louisiana, as reported by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Bancorp Farmers and Merchants | 1 | 1 | 0 | 0 | 1.50 |
| Home Federal Bancorp, Inc. of Louisiana | 0 | 0 | 0 | 0 | N / A |
Profitability
This chart compares the net margins, return on equity, and return on assets of Farmers & Merchants Bancorp and Home Federal Bancorp, Inc. of Louisiana.
| Net margins | Return on equity | return on assets | |
| Bancorp Farmers and Merchants | 26.98% | 10.93% | 1.23% |
| Home Federal Bancorp, Inc. of Louisiana | 22.43% | 9.61% | 0.90% |
Insider and Institutional Ownership
17.9% of Farmers & Merchants Bancorp shares are held by institutional investors. In comparison, 28.9% of the shares of Home Federal Bancorp, Inc. of Louisiana are held by institutional investors. 8.1% of Farmers & Merchants Bancorp shares are held by insiders of the company. By comparison, 21.2% of the shares of Home Federal Bancorp, Inc. of Louisiana are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
Risk and Volatility
Farmers & Merchants Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Home Federal Bancorp, Inc. of Louisiana has a beta of 0.5, which which indicates that its share price is 50% less volatile. volatile than the S&P 500.
Summary
Farmers & Merchants Bancorp beat Home Federal Bancorp, Inc. of Louisiana on 9 out of 14 factors compared between the two stocks.
About Farmers & Merchants Bancorp (Get a rating)
Farmers & Merchants Bancorp, Inc. operates as a bank holding company for The Farmers & Merchants State Bank which provides commercial banking services to individuals and small businesses in Northwest Ohio and Northeast Indiana. The company offers checking, savings and term deposit accounts; certificates of deposit; and custodial services for individual retirement and health savings accounts. It also offers commercial, agricultural and residential mortgages, as well as consumer credit and credit card products; loans for agricultural land, agricultural equipment and livestock; operating loans for seeds, fertilizers and animal feed; home improvement loans; and loans for cars, trucks, recreational vehicles and motorcycles. In addition, the company offers commercial real estate loans, such as lines of credit and loans for the purchase of machinery. In addition, it provides ATM or interactive banking services; and online and mobile banking, remote deposit capture or electronic deposit processing, and merchant credit card services. It also offers electronic transaction origination services, such as electronic transmission services and automated transmission of clearing house files. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is headquartered in Archbold, Ohio.
About Home Federal Bancorp, Inc. of Louisiana (Get a rating)
Home Federal Bancorp, Inc. of Louisiana operates as a holding company of Home Federal Bank which provides various financial services to individuals, corporations and other organizations. The company accepts various deposits, such as passbooks, certificates of deposit and demand deposit accounts. Its lending products include residential real estate loans for one to four families; secured commercial real estate loans; multi-family residential loans; commercial business loans; land loans; building loans; home equity and second mortgages; equity lines of credit; and non-real estate consumer loans, including loans secured by deposit accounts, auto loans, overdrafts and other unsecured loans. As of August 25, 2021, it operated seven full-service banking offices. The company was founded in 1924 and is based in Shreveport, Louisiana.
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