Guaranty Bancshares (NASDAQ:GNTY) and First Midwest Bancorp (NASDAQ:FMBI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
This is a breakdown of recent ratings and target prices for Guaranty Bancshares and First Midwest Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Midwest Bancorp||0||4||0||0||2.00|
Valuation & Earnings
This table compares Guaranty Bancshares and First Midwest Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Bancshares||$126.08 million||3.61||$27.40 million||$3.30||11.45|
|First Midwest Bancorp||$791.97 million||3.01||$107.90 million||$1.18||17.66|
First Midwest Bancorp has higher revenue and earnings than Guaranty Bancshares. Guaranty Bancshares is trading at a lower price-to-earnings ratio than First Midwest Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Guaranty Bancshares has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, First Midwest Bancorp has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
This table compares Guaranty Bancshares and First Midwest Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Midwest Bancorp||17.11%||6.41%||0.74%|
Institutional & Insider Ownership
22.0% of Guaranty Bancshares shares are owned by institutional investors. Comparatively, 81.7% of First Midwest Bancorp shares are owned by institutional investors. 27.4% of Guaranty Bancshares shares are owned by insiders. Comparatively, 1.2% of First Midwest Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Guaranty Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. First Midwest Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Guaranty Bancshares pays out 24.2% of its earnings in the form of a dividend. First Midwest Bancorp pays out 47.5% 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. Guaranty Bancshares has raised its dividend for 3 consecutive years and First Midwest Bancorp has raised its dividend for 1 consecutive years.
Guaranty Bancshares beats First Midwest Bancorp on 8 of the 15 factors compared between the two stocks.
Guaranty Bancshares Company Profile
Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers various deposit products, such as checking and savings, money market, and business accounts, as well as certificates of deposit; and loan products comprising commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans. It also provides trust, wealth management, and retirement plan services; online, mobile, and telephone banking, as well as automated teller machine services; debit cards; night depository and direct deposit services; cashier's checks and letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. The company operates approximately 31 full service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA), and the Houston MSA. Guaranty Bancshares, Inc. was founded in 1913 and is headquartered in Addison, Texas.
First Midwest Bancorp Company Profile
First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital needs; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured and unsecured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. In addition, the company offers treasury management products and services comprising automated clearing house collection, lockbox, remote deposit capture, and financial electronic data interchange; wire transfer, account reconciliation, controlled disbursement, direct deposit, and positive pay services; information reporting services; corporate credit cards; and liquidity management, fraud prevention, and merchant services. Further, it provides fiduciary and executor, financial planning, investment advisory, employee benefit plan, and private banking services to corporate and public retirement plans, foundations and endowments, high net worth individuals, and multi-employer trust funds. Additionally, the company offers debit and automated teller machine (ATM), and credit cards; internet and mobile, and telephone banking services; and financial education services. The company operates 115 locations and 184 ATMs in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, eastern Iowa, and other markets in the Midwest. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.
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