FRME vs. FMBI, FFBC, SFNC, WSBC, WAFD, FHN, WAL, WBS, CBSH, and ZION
Should you be buying First Merchants stock or one of its competitors? The main competitors of First Merchants include First Midwest Bancorp (FMBI), First Financial Bancorp. (FFBC), Simmons First National (SFNC), WesBanco (WSBC), WaFd (WAFD), First Horizon (FHN), Western Alliance Bancorporation (WAL), Webster Financial (WBS), Commerce Bancshares (CBSH), and Zions Bancorporation, National Association (ZION). These companies are all part of the "finance" sector.
First Merchants (NASDAQ:FRME) and First Midwest Bancorp (NASDAQ:FMBI) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their community ranking, analyst recommendations, risk, valuation, earnings, profitability, media sentiment, institutional ownership and dividends.
In the previous week, First Merchants had 14 more articles in the media than First Midwest Bancorp. MarketBeat recorded 14 mentions for First Merchants and 0 mentions for First Midwest Bancorp. First Merchants' average media sentiment score of 0.51 beat First Midwest Bancorp's score of 0.00 indicating that First Merchants is being referred to more favorably in the media.
First Merchants has higher revenue and earnings than First Midwest Bancorp. First Merchants is trading at a lower price-to-earnings ratio than First Midwest Bancorp, indicating that it is currently the more affordable of the two stocks.
First Merchants pays an annual dividend of $1.40 per share and has a dividend yield of 3.4%. First Midwest Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. First Merchants pays out 40.3% of its earnings in the form of a dividend. First Midwest Bancorp pays out 35.0% 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.
First Merchants has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, First Midwest Bancorp has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
73.9% of First Merchants shares are held by institutional investors. Comparatively, 81.1% of First Midwest Bancorp shares are held by institutional investors. 1.3% of First Merchants shares are held by company insiders. Comparatively, 1.2% of First Midwest Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
First Midwest Bancorp received 75 more outperform votes than First Merchants when rated by MarketBeat users. However, 59.80% of users gave First Merchants an outperform vote while only 58.21% of users gave First Midwest Bancorp an outperform vote.
First Midwest Bancorp has a net margin of 25.27% compared to First Merchants' net margin of 17.77%. First Merchants' return on equity of 9.20% beat First Midwest Bancorp's return on equity.
First Merchants currently has a consensus price target of $42.50, suggesting a potential upside of 2.78%. Given First Merchants' higher probable upside, equities analysts plainly believe First Merchants is more favorable than First Midwest Bancorp.
Summary
First Merchants beats First Midwest Bancorp on 12 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FRME and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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