First Mid Bancshares (NASDAQ:FMBH) & MVB Financial (NASDAQ:MVBF) Head to Head Review

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

Risk and Volatility

MVB Financial has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MVB Financial	$147.71 million	1.69	$31.23 million	$1.87	10.35
First Mid Bancshares	$306.31 million	3.04	$68.93 million	$3.10	12.55

First Mid Bancshares has higher revenue and earnings than MVB Financial. MVB Financial 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

MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. First Mid Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. MVB Financial pays out 36.4% of its earnings in the form of a dividend. First Mid Bancshares pays out 31.0% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MVB Financial	9.28%	7.08%	0.60%
First Mid Bancshares	16.75%	10.43%	1.07%

Institutional & Insider Ownership

52.7% of MVB Financial shares are owned by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are owned by institutional investors. 11.1% of MVB Financial shares are owned by insiders. Comparatively, 7.7% of First Mid Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for MVB Financial and First Mid Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MVB Financial	0	1	2	0	2.67
First Mid Bancshares	0	0	4	0	3.00

MVB Financial presently has a consensus target price of $25.00, indicating a potential upside of 29.13%. First Mid Bancshares has a consensus target price of $37.25, indicating a potential downside of 4.27%. Given MVB Financial’s higher possible upside, research analysts clearly believe MVB Financial is more favorable than First Mid Bancshares.

Summary

First Mid Bancshares beats MVB Financial on 11 of the 16 factors compared between the two stocks.

About MVB Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

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.