Commercial National Financial (OTCMKTS:CNAF) and First Mid-Illinois Bancshares (NASDAQ:FMBH) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Dividends

Commercial National Financial pays an annual dividend of $1.04 per share and has a dividend yield of 4.5%. First Mid-Illinois Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.2%. First Mid-Illinois Bancshares pays out 26.4% of its earnings in the form of a dividend. First Mid-Illinois Bancshares has increased its dividend for 2 consecutive years.

Profitability

This table compares Commercial National Financial and First Mid-Illinois Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commercial National Financial 23.65% 7.41% 1.07%
First Mid-Illinois Bancshares 23.07% 9.92% 1.24%

Analyst Ratings

This is a breakdown of current ratings for Commercial National Financial and First Mid-Illinois Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commercial National Financial 0 0 0 0 N/A
First Mid-Illinois Bancshares 0 1 2 0 2.67

First Mid-Illinois Bancshares has a consensus price target of $42.00, suggesting a potential upside of 25.52%. Given First Mid-Illinois Bancshares’ higher probable upside, analysts plainly believe First Mid-Illinois Bancshares is more favorable than Commercial National Financial.

Volatility and Risk

Commercial National Financial has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, First Mid-Illinois Bancshares has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Insider and Institutional Ownership

3.6% of Commercial National Financial shares are owned by institutional investors. Comparatively, 29.0% of First Mid-Illinois Bancshares shares are owned by institutional investors. 22.4% of Commercial National Financial shares are owned by insiders. Comparatively, 13.6% of First Mid-Illinois Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Commercial National Financial and First Mid-Illinois Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commercial National Financial $18.64 million 3.53 $4.34 million N/A N/A
First Mid-Illinois Bancshares $159.98 million 3.49 $36.60 million $2.73 12.26

First Mid-Illinois Bancshares has higher revenue and earnings than Commercial National Financial.

Summary

First Mid-Illinois Bancshares beats Commercial National Financial on 9 of the 15 factors compared between the two stocks.

About Commercial National Financial

Commercial National Financial Corporation operates as a bank holding company for Commercial Bank & Trust of PA that provides various banking services in Pennsylvania. The company offers checking, money market investment, and savings accounts; and business-time deposits, as well as certificates of deposit. It also provides loan products, such as residential mortgages, construction mortgages, home-equity loans, personal lines of credit, personal loans, and automobile loans; and commercial loans, mortgages, term loans, and lines of credit. In addition, the company offers other services, including automatic teller machine access/debit card, online banking, mobile banking, and online bill payment services; and direct deposit\payroll processing and night depository services. Further, it provides asset management and trust services comprising trust and estate, investment management, and cash management services, as well as retirement products. The company operates a network of nine community offices with facilities in Greensburg, Hempfield Township, Latrobe, Ligonier, North Huntingdon, Unity Township, and West Newton. Commercial National Financial Corporation was founded in 1934 and is headquartered in Latrobe, Pennsylvania.

About First Mid-Illinois Bancshares

First Mid Bancshares, Inc., through its subsidiaries, 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; 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 services for individuals; and employee benefit services for business enterprises. In addition, the company provides commercial lines insurance to businesses, as well as homeowner, automobile, health, life, and other types of personal lines insurance to individuals. As of March 4, 2019, it operated through a network of 67 banking centers in Illinois and Missouri, and a loan production office in Indiana. 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 incorporated in 1981 and is headquartered in Mattoon, Illinois.

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