Comparing SI Financial Group (SIFI) and Farmers & Merchants Bancorp, Inc. (OH) (FMAO)

SI Financial Group (NASDAQ:SIFI) and Farmers & Merchants Bancorp, Inc. (OH) (NASDAQ:FMAO) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

SI Financial Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bancorp, Inc. (OH) has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares SI Financial Group and Farmers & Merchants Bancorp, Inc. (OH)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SI Financial Group 13.78% 6.16% 0.65%
Farmers & Merchants Bancorp, Inc. (OH) 26.09% 11.31% 1.41%

Dividends

SI Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Farmers & Merchants Bancorp, Inc. (OH) pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Farmers & Merchants Bancorp, Inc. (OH) pays out 35.7% of its earnings in the form of a dividend. SI Financial Group has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

62.2% of SI Financial Group shares are owned by institutional investors. Comparatively, 15.5% of Farmers & Merchants Bancorp, Inc. (OH) shares are owned by institutional investors. 1.7% of SI Financial Group shares are owned by insiders. Comparatively, 10.0% of Farmers & Merchants Bancorp, Inc. (OH) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SI Financial Group and Farmers & Merchants Bancorp, Inc. (OH), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SI Financial Group 0 0 0 0 N/A
Farmers & Merchants Bancorp, Inc. (OH) 0 1 0 0 2.00

Earnings & Valuation

This table compares SI Financial Group and Farmers & Merchants Bancorp, Inc. (OH)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SI Financial Group $69.41 million 2.45 $9.56 million N/A N/A
Farmers & Merchants Bancorp, Inc. (OH) $57.29 million 5.58 $14.95 million $1.68 17.14

Farmers & Merchants Bancorp, Inc. (OH) has lower revenue, but higher earnings than SI Financial Group.

Summary

Farmers & Merchants Bancorp, Inc. (OH) beats SI Financial Group on 8 of the 13 factors compared between the two stocks.

About SI Financial Group

SI Financial Group, Inc. operates as the holding company for Savings Institute Bank and Trust Company that provides various financial services to consumers and businesses. Its deposit products include noninterest-bearing demand accounts, such as checking accounts; and interest-bearing accounts, including NOW and money market accounts, regular savings accounts, and certificates of deposit. The company's loan portfolio comprises one- to four-family residential mortgage loans, multi-family and commercial real estate loans, commercial business loans, and construction and land loans. It also provides consumer loans that include home equity lines of credit; and loans secured by marketable securities, passbook or certificate accounts, motorcycles, automobiles, and recreational vehicles. In addition, the company offers trust services, which comprise fiduciary, investment management, and retirement services to individuals, partnerships, corporations, and institutions; and life insurance and annuities. It operates 24 full-service offices throughout Windham, New London, Tolland, Hartford, and Middlesex counties in Connecticut, as well as Newport and Washington counties in Rhode Island. The company was founded in 1842 and is headquartered in Willimantic, Connecticut.

About Farmers & Merchants Bancorp, Inc. (OH)

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking accounts; savings and time deposits, including certificates of deposits; and custodial services for individual retirement accounts and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farm land, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvements loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as operation lines of credit and machinery purchase loans; and agricultural and consumer real estate, commercial and industrial, agricultural, and consumer loans, as well as industrial development bonds. Further, it provides automated teller machine services; and online banking, remote deposit capture or electronic deposit processing, merchant credit card, and mobile banking services. As of February 13, 2019, the company operated through 30 offices. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is based in Archbold, Ohio.

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