Financial Comparison: Glacier Bancorp (NYSE:GBCI) & Farmers & Merchants Bancorp (NASDAQ:FMAO)

Farmers & Merchants Bancorp (NASDAQ:FMAO) and Glacier Bancorp (NYSE:GBCI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Farmers & Merchants Bancorp and Glacier Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers & Merchants Bancorp	0	2	1	1	2.75
Glacier Bancorp	1	2	5	0	2.50

Farmers & Merchants Bancorp presently has a consensus target price of $32.25, indicating a potential downside of 7.46%. Glacier Bancorp has a consensus target price of $55.17, indicating a potential upside of 19.27%. Given Glacier Bancorp’s higher possible upside, analysts plainly believe Glacier Bancorp is more favorable than Farmers & Merchants Bancorp.

Valuation & Earnings

This table compares Farmers & Merchants Bancorp and Glacier Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bancorp	$190.68 million	2.52	$33.31 million	$2.91	11.98
Glacier Bancorp	$1.44 billion	4.19	$239.03 million	$2.44	18.96

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

Risk and Volatility

Farmers & Merchants Bancorp has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

24.0% of Farmers & Merchants Bancorp shares are held by institutional investors. Comparatively, 80.2% of Glacier Bancorp shares are held by institutional investors. 7.3% of Farmers & Merchants Bancorp shares are held by insiders. Comparatively, 0.5% of Glacier Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Farmers & Merchants Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Glacier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. Farmers & Merchants Bancorp pays out 31.6% of its earnings in the form of a dividend. Glacier Bancorp pays out 54.1% 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. Farmers & Merchants Bancorp has increased its dividend for 19 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bancorp	20.27%	10.72%	1.16%
Glacier Bancorp	19.72%	7.97%	1.05%

Summary

Farmers & Merchants Bancorp beats Glacier Bancorp on 10 of the 18 factors compared between the two stocks.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp, Inc. is a bank holding company, which engages in the provision of commercial banking, retail banking, and financial services. It includes commercial, agricultural, and residential mortgages as well as consumer and credit card lending activities. The firm also offers checking account services, and savings and time deposit services. The company was founded in 1985 and is headquartered in Archbold, OH.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.