Hawthorn Bancshares (NASDAQ:HWBK) and Farmers & Merchants Bancorp (OTCMKTS:FMCB) Financial Survey

Farmers & Merchants Bancorp (OTCMKTS:FMCBGet Free Report) and Hawthorn Bancshares (NASDAQ:HWBKGet Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Institutional and Insider Ownership

5.6% of Farmers & Merchants Bancorp shares are owned by institutional investors. Comparatively, 30.7% of Hawthorn Bancshares shares are owned by institutional investors. 7.8% of Farmers & Merchants Bancorp shares are owned by insiders. Comparatively, 23.4% of Hawthorn Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Farmers & Merchants Bancorp has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Dividends

Farmers & Merchants Bancorp pays an annual dividend of $17.60 per share and has a dividend yield of 1.8%. Hawthorn Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. Farmers & Merchants Bancorp pays out 15.1% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 226.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hawthorn Bancshares has raised its dividend for 4 consecutive years. Hawthorn Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Farmers & Merchants Bancorp and Hawthorn Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmers & Merchants Bancorp 31.55% 16.20% 1.62%
Hawthorn Bancshares 2.09% 1.65% 0.11%

Analyst Recommendations

This is a breakdown of current recommendations for Farmers & Merchants Bancorp and Hawthorn Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmers & Merchants Bancorp 0 0 0 0 N/A
Hawthorn Bancshares 0 0 0 0 N/A

Valuation & Earnings

This table compares Farmers & Merchants Bancorp and Hawthorn Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmers & Merchants Bancorp $268.67 million 2.71 $88.31 million $116.37 8.46
Hawthorn Bancshares $99.50 million 1.37 $960,000.00 $0.30 64.87

Farmers & Merchants Bancorp has higher revenue and earnings than Hawthorn Bancshares. Farmers & Merchants Bancorp is trading at a lower price-to-earnings ratio than Hawthorn Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers & Merchants Bancorp beats Hawthorn Bancshares on 8 of the 14 factors compared between the two stocks.

About Farmers & Merchants Bancorp

(Get Free Report)

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. The company was founded in 1916 and is headquartered in Lodi, California.

About Hawthorn Bancshares

(Get Free Report)

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.

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