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

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

Valuation & Earnings

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

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

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

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

Volatility & Risk

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

Analyst Ratings

This is a breakdown of current recommendations for Atlantic Union Bankshares and F & M Bank, as provided by MarketBeat.

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

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

Insider & Institutional Ownership

69.6% of Atlantic Union Bankshares shares are held by institutional investors. Comparatively, 2.8% of F & M Bank shares are held by institutional investors. 1.1% of Atlantic Union Bankshares shares are held by insiders. Comparatively, 15.4% of F & M Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Atlantic Union Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.1%. F & M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 3.6%. Atlantic Union Bankshares pays out 33.1% of its earnings in the form of a dividend. F & M Bank pays out 29.1% 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 increased 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.

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.

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.

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