Head to Head Analysis: First Horizon (NYSE:FHN) & Farmers & Merchants Bancorp (OTCMKTS:FMCB)

Farmers & Merchants Bancorp (OTCMKTS:FMCBGet Rating) and First Horizon (NYSE:FHNGet Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Farmers & Merchants Bancorp and First Horizon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmers & Merchants Bancorp N/A N/A N/A
First Horizon 24.76% 13.53% 1.26%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Farmers & Merchants Bancorp and First Horizon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmers & Merchants Bancorp 0 0 0 0 N/A
First Horizon 0 1 1 0 2.50

First Horizon has a consensus price target of $25.00, suggesting a potential upside of 66.11%. Given First Horizon’s higher probable upside, analysts clearly believe First Horizon is more favorable than Farmers & Merchants Bancorp.

Valuation and Earnings

This table compares Farmers & Merchants Bancorp and First Horizon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmers & Merchants Bancorp $204.59 million 3.59 $75.09 million N/A N/A
First Horizon $3.29 billion 2.46 $900.00 million $1.62 9.29

First Horizon has higher revenue and earnings than Farmers & Merchants Bancorp.

Institutional and Insider Ownership

77.4% of First Horizon shares are owned by institutional investors. 1.6% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

First Horizon beats Farmers & Merchants Bancorp on 9 of the 10 factors compared between the two stocks.

About Farmers & Merchants Bancorp

(Get Rating)

Farmers & Merchants Bancorp is a bank holding company, which engages in the provision of financial services to individuals, families, and businesses. Its services include commercial, commercial real estate, real estate construction, agribusiness, consumer, credit card, residential real estate loans, and equipment leases. The company was founded in 1916 and is headquartered in Lodi, CA.

About First Horizon

(Get Rating)

First Horizon Corp. (Tennessee) operates as a financial holding company, which engages in the provision of checking accounts, savings products, mortgage banking, lending, and financing to individuals and businesses. It operates the business through three segments: Regional Banking, Specialty Banking, and Corporate. The Regional Banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers. The Specialty Banking segment consists of lines of business that deliver product offerings and services with specialized industry knowledge. The Corporate segment focuses on corporate support functions such as risk management, audit, accounting, finance, executive office, and corporate communications. The company was founded by Frank S. Davis in 1864 and is headquartered in Memphis, TN.

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