Inter & Co, Inc. (NASDAQ:INTR) vs. Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) Head-To-Head Analysis

Inter & Co, Inc. (NASDAQ:INTR) and Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Inter & Co, Inc. and Farmers & Merchants Bank of Long Beach’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inter & Co, Inc.	1.19%	0.89%	0.14%
Farmers & Merchants Bank of Long Beach	22.94%	7.05%	0.77%

Valuation & Earnings

This table compares Inter & Co, Inc. and Farmers & Merchants Bank of Long Beach’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inter & Co, Inc.	$730.31 million	2.08	-$2.15 million	$0.03	126.04
Farmers & Merchants Bank of Long Beach	$358.80 million	1.64	$109.00 million	$725.05	6.77

Farmers & Merchants Bank of Long Beach has lower revenue, but higher earnings than Inter & Co, Inc.. Farmers & Merchants Bank of Long Beach is trading at a lower price-to-earnings ratio than Inter & Co, Inc., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Inter & Co, Inc. and Farmers & Merchants Bank of Long Beach, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inter & Co, Inc.	0	2	3	0	2.60
Farmers & Merchants Bank of Long Beach	0	0	0	0	N/A

Inter & Co, Inc. presently has a consensus price target of $4.32, suggesting a potential upside of 14.29%. Given Inter & Co, Inc.’s higher probable upside, equities research analysts plainly believe Inter & Co, Inc. is more favorable than Farmers & Merchants Bank of Long Beach.

Insider and Institutional Ownership

18.9% of Inter & Co, Inc. shares are held by institutional investors. Comparatively, 7.6% of Farmers & Merchants Bank of Long Beach shares are held by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Inter & Co, Inc. has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Farmers & Merchants Bank of Long Beach has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Summary

Inter & Co, Inc. beats Farmers & Merchants Bank of Long Beach on 7 of the 13 factors compared between the two stocks.

About Inter & Co, Inc.

Inter & Co, Inc., through its subsidiaries, engages in the banking, securities, insurance brokerage, marketplace, asset management, and services businesses. The company's Banking segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. Its Securities segment provides services relating to the purchase, sale, and custody of securities; and portfolio management, as well as the establishment, organization, and management of investment funds. The company's Insurance Brokerage segment offers life, property, auto, financial, lost or stolen credit card, dental, warranties, travel, and credit protection insurance products. Its Marketplace segment operates a digital platform that offer goods and/or services to its customers. The company's Asset Management segment is involved in the operations related to the management of fund portfolios and other assets. Its Services segment provides services in the collection and management of personal information; development and licensing of customized and non-customized computer programs; and technical support, maintenance, and other information technology services. The company was founded in 1994 and is based in Belo Horizonte, Brazil.

About Farmers & Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.