Analyzing F & M Bank (OTCMKTS:FMBM) & Atlantic Union Bankshares (NASDAQ:AUB)

F & M Bank (OTCMKTS:FMBM) and Atlantic Union Bankshares (NASDAQ:AUB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Valuation & Earnings

This table compares F & M Bank and Atlantic Union Bankshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
F & M Bank $49.00 million 2.03 $8.79 million $3.58 8.04
Atlantic Union Bankshares $784.94 million 3.44 $158.23 million $3.38 10.56

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

Profitability

This table compares F & M Bank and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F & M Bank 24.88% 12.87% 1.14%
Atlantic Union Bankshares 37.83% 11.19% 1.53%

Risk and Volatility

F & M Bank has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for F & M Bank and Atlantic Union Bankshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F & M Bank 0 0 0 0 N/A
Atlantic Union Bankshares 0 1 1 0 2.50

Atlantic Union Bankshares has a consensus price target of $42.00, indicating a potential upside of 17.68%. Given Atlantic Union Bankshares’ higher possible upside, analysts plainly believe Atlantic Union Bankshares is more favorable than F & M Bank.

Institutional and Insider Ownership

2.8% of F & M Bank shares are owned by institutional investors. Comparatively, 69.6% of Atlantic Union Bankshares shares are owned by institutional investors. 15.4% of F & M Bank shares are owned by company insiders. Comparatively, 1.1% of Atlantic Union Bankshares shares are owned 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.

Dividends

F & M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 3.6%. Atlantic Union Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.1%. F & M Bank pays out 29.1% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 33.1% 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. Atlantic Union Bankshares has raised its dividend for 1 consecutive years. F & M Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Atlantic Union Bankshares beats F & M Bank on 11 of the 16 factors compared between the two stocks.

F & M Bank Company Profile

F&M Bank Corp. operates as a bank holding company. The firm provides commercial banking services, including commercial and individual demand and time deposit accounts, repurchase agreements for commercial customers, commercial and individual loans, Internet banking, drive-in banking services, as well as a courier service for its commercial banking customers. Its loans are grouped into segments: construction/land development, farmland, real estate, multi-family, commercial real estate, home equity closed end, home equity open end, commercial & industrialnon-real estate, consumer, credit cards and dealer finance. The company was founded in 1983 and is headquartered in Timberville, VA.

Atlantic Union Bankshares Company Profile

Atlantic Union Bankshares Corp. is a bank holding company, which engages in the provision of financial services. It specializes in offering community banking services. Its services include checking, savings, lending, credit cards, online and mobile banking, treasury management, business eBanking, and wealth management. The company was founded in July 1993 and is headquartered in Richmond, VA.

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