FVCBankcorp (NASDAQ:FVCB) vs. First Mid Bancshares (NASDAQ:FMBH) Head to Head Review

FVCBankcorp (NASDAQ:FVCB) and First Mid Bancshares (NASDAQ:FMBH) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Volatility and Risk

FVCBankcorp has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

43.6% of FVCBankcorp shares are held by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are held by institutional investors. 14.0% of FVCBankcorp shares are held by company insiders. Comparatively, 7.7% of First Mid Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FVCBankcorp and First Mid Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FVCBankcorp	0	0	1	0	3.00
First Mid Bancshares	0	0	4	0	3.00

FVCBankcorp currently has a consensus target price of $14.00, indicating a potential upside of 22.81%. First Mid Bancshares has a consensus target price of $37.00, indicating a potential upside of 14.37%. Given FVCBankcorp’s higher probable upside, equities analysts clearly believe FVCBankcorp is more favorable than First Mid Bancshares.

Earnings and Valuation

This table compares FVCBankcorp and First Mid Bancshares’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FVCBankcorp	$93.25 million	2.20	$3.82 million	$0.24	47.50
First Mid Bancshares	$386.95 million	2.00	$68.93 million	$3.10	10.46

First Mid Bancshares has higher revenue and earnings than FVCBankcorp. First Mid Bancshares is trading at a lower price-to-earnings ratio than FVCBankcorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FVCBankcorp and First Mid Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FVCBankcorp	4.55%	7.39%	0.69%
First Mid Bancshares	17.01%	10.56%	1.06%

Summary

First Mid Bancshares beats FVCBankcorp on 9 of the 13 factors compared between the two stocks.

About FVCBankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

About First Mid Bancshares

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company's loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.