Inter & Co. Inc. (NASDAQ:INTR) & Farmers National Banc (NASDAQ:FMNB) Head to Head Contrast

Farmers National Banc (NASDAQ:FMNB) and Inter & Co. Inc. (NASDAQ:INTR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Farmers National Banc and Inter & Co. Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers National Banc	20.52%	12.03%	1.21%
Inter & Co. Inc.	11.23%	14.94%	1.57%

Valuation and Earnings

This table compares Farmers National Banc and Inter & Co. Inc.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers National Banc	$223.55 million	4.12	$54.59 million	$1.47	10.59
Inter & Co. Inc.	$1.93 billion	1.22	$235.05 million	$0.66	8.11

Inter & Co. Inc. has higher revenue and earnings than Farmers National Banc. Inter & Co. Inc. is trading at a lower price-to-earnings ratio than Farmers National Banc, indicating that it is currently the more affordable of the two stocks.

Dividends

Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 2.1%. Farmers National Banc pays out 49.0% of its earnings in the form of a dividend. Inter & Co. Inc. pays out 16.7% 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.

Volatility and Risk

Farmers National Banc has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Farmers National Banc and Inter & Co. Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers National Banc	0	2	1	0	2.33
Inter & Co. Inc.	0	3	3	0	2.50

Farmers National Banc presently has a consensus target price of $16.00, suggesting a potential upside of 2.83%. Inter & Co. Inc. has a consensus target price of $9.16, suggesting a potential upside of 71.21%. Given Inter & Co. Inc.’s stronger consensus rating and higher probable upside, analysts plainly believe Inter & Co. Inc. is more favorable than Farmers National Banc.

Institutional & Insider Ownership

38.7% of Farmers National Banc shares are held by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. shares are held by institutional investors. 3.5% of Farmers National Banc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Inter & Co. Inc. beats Farmers National Banc on 9 of the 16 factors compared between the two stocks.

About Farmers National Banc

Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.

About Inter & Co. Inc.

Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.