Head to Head Review: First Mid Bancshares (NASDAQ:FMBH) and NBT Bancorp (NASDAQ:NBTB)

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

Analyst Ratings

This is a breakdown of recent ratings for First Mid Bancshares and NBT Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Mid Bancshares	0	2	4	0	2.67
NBT Bancorp	0	2	2	1	2.80

First Mid Bancshares presently has a consensus price target of $43.75, suggesting a potential upside of 0.18%. NBT Bancorp has a consensus price target of $52.00, suggesting a potential upside of 13.91%. Given NBT Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe NBT Bancorp is more favorable than First Mid Bancshares.

Risk and Volatility

First Mid Bancshares has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Mid Bancshares and NBT Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Mid Bancshares	$342.27 million	3.40	$91.75 million	$3.84	11.37
NBT Bancorp	$694.39 million	3.42	$169.24 million	$3.30	13.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Mid Bancshares	19.69%	10.44%	1.23%
NBT Bancorp	18.67%	10.86%	1.25%

Dividends

First Mid Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. NBT Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. First Mid Bancshares pays out 26.0% of its earnings in the form of a dividend. NBT Bancorp pays out 44.8% 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. First Mid Bancshares has raised its dividend for 3 consecutive years and NBT Bancorp has raised its dividend for 12 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

47.6% of First Mid Bancshares shares are owned by institutional investors. Comparatively, 58.5% of NBT Bancorp shares are owned by institutional investors. 6.0% of First Mid Bancshares shares are owned by insiders. Comparatively, 3.0% of NBT Bancorp shares are owned by 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.

Summary

NBT Bancorp beats First Mid Bancshares on 12 of the 18 factors compared between the two stocks.

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.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.