Silvergate Capital (NYSE:SI – Get Free Report) and F & M Bank (OTCMKTS:FMBM – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Earnings & Valuation
This table compares Silvergate Capital and F & M Bank’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Silvergate Capital | -$609.47 million | -0.02 | -$937.91 million | ($29.96) | -0.01 |
F & M Bank | $66.48 million | 0.83 | $2.77 million | $0.79 | 20.00 |
F & M Bank has higher revenue and earnings than Silvergate Capital. Silvergate Capital is trading at a lower price-to-earnings ratio than F & M Bank, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Analyst Ratings
This is a summary of current recommendations for Silvergate Capital and F & M Bank, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Silvergate Capital | 0 | 0 | 0 | 0 | N/A |
F & M Bank | 0 | 0 | 0 | 0 | N/A |
Institutional and Insider Ownership
94.4% of Silvergate Capital shares are held by institutional investors. Comparatively, 3.8% of F & M Bank shares are held by institutional investors. 1.7% of Silvergate Capital shares are held by insiders. Comparatively, 8.6% 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 company will outperform the market over the long term.
Profitability
This table compares Silvergate Capital and F & M Bank’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Silvergate Capital | 45.10% | 8.87% | 0.81% |
F & M Bank | 4.20% | 4.94% | 0.28% |
Dividends
Silvergate Capital pays an annual dividend of $2.94 per share and has a dividend yield of 735.5%. F & M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 6.6%. Silvergate Capital pays out -9.8% of its earnings in the form of a dividend. F & M Bank pays out 131.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silvergate Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Silvergate Capital beats F & M Bank on 7 of the 13 factors compared between the two stocks.
About Silvergate Capital
Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.
About F & M Bank
F & M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides commercial banking services in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, checking accounts, money market accounts, internet and mobile banking services, and drive-in banking services. It also provides construction loans, including residential, and land acquisition and development loans; commercial real estate loans; business loans; consumer loans, such as personal loans and lines of credit, automobile loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgage loans; credit cards; dealer finance; farmland loans; multi-family loans; and commercial and industrial loans. In addition, the company offers brokerage services; and life, and commercial and personal insurance products. Further, it originates conventional and government sponsored mortgages; and title insurance and real estate settlement services. The company was founded in 1908 and is headquartered in Timberville, Virginia.
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