Analyzing Jeffersonville Bancorp (OTCMKTS:JFBC) and First Mid Bancshares (NASDAQ:FMBH)

Jeffersonville Bancorp (OTCMKTS:JFBC) and First Mid Bancshares (NASDAQ:FMBH) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Profitability

This table compares Jeffersonville Bancorp and First Mid Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jeffersonville Bancorp	37.76%	12.84%	1.95%
First Mid Bancshares	19.76%	11.17%	1.32%

Analyst Recommendations

This is a summary of recent ratings and target prices for Jeffersonville Bancorp and First Mid Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeffersonville Bancorp	0	0	0	0	0.00
First Mid Bancshares	0	3	3	0	2.50

First Mid Bancshares has a consensus target price of $54.62, suggesting a potential upside of 3.89%. Given First Mid Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe First Mid Bancshares is more favorable than Jeffersonville Bancorp.

Earnings & Valuation

This table compares Jeffersonville Bancorp and First Mid Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeffersonville Bancorp	$34.24 million	3.43	$12.55 million	$3.10	8.95
First Mid Bancshares	$466.04 million	3.00	$91.75 million	$4.03	13.05

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

Dividends

Jeffersonville Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. First Mid Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Jeffersonville Bancorp pays out 25.8% of its earnings in the form of a dividend. First Mid Bancshares pays out 24.8% 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. First Mid Bancshares has increased its dividend for 3 consecutive years.

Volatility & Risk

Jeffersonville Bancorp has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

47.6% of First Mid Bancshares shares are held by institutional investors. 8.4% of Jeffersonville Bancorp shares are held by insiders. Comparatively, 6.0% of First Mid Bancshares shares are held 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.

Summary

First Mid Bancshares beats Jeffersonville Bancorp on 11 of the 17 factors compared between the two stocks.

About Jeffersonville Bancorp

Jeffersonville Bancorp operates as the bank holding company for Jeff Bank that provides community banking services to individuals, small businesses, and local municipal governments primarily in Sullivan County, New York. The company offers various deposit products, such as checking, money market, savings, and NOW, as well as demand and time deposits. It also offers commercial mortgage, farmland, construction, real estate, agricultural, residential mortgage, home equity, consumer, installment, and other consumer loans. The company was founded in 1913 and is based in Jeffersonville, New York.

About First Mid Bancshares

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company’s loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.