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

Profitability

This table compares First Mid-Illinois Bancshares and FCB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Mid-Illinois Bancshares 22.67% 9.75% 1.02%
FCB Financial 34.09% 11.42% 1.27%

Volatility & Risk

First Mid-Illinois Bancshares has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, FCB Financial has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Dividends

First Mid-Illinois Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. FCB Financial does not pay a dividend. First Mid-Illinois Bancshares pays out 29.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for First Mid-Illinois Bancshares and FCB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Mid-Illinois Bancshares 0 1 0 0 2.00
FCB Financial 0 1 2 0 2.67

First Mid-Illinois Bancshares currently has a consensus price target of $37.00, indicating a potential downside of 5.13%. FCB Financial has a consensus price target of $54.00, indicating a potential upside of 1.60%. Given FCB Financial’s stronger consensus rating and higher probable upside, analysts clearly believe FCB Financial is more favorable than First Mid-Illinois Bancshares.

Valuation and Earnings

This table compares First Mid-Illinois Bancshares and FCB Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Mid-Illinois Bancshares $102.41 million 4.81 $21.84 million $2.31 16.88
FCB Financial $349.03 million 6.68 $99.91 million $2.95 18.02

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

Institutional and Insider Ownership

20.4% of First Mid-Illinois Bancshares shares are owned by institutional investors. Comparatively, 93.7% of FCB Financial shares are owned by institutional investors. 20.3% of First Mid-Illinois Bancshares shares are owned by insiders. Comparatively, 15.4% of FCB Financial 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.

Summary

FCB Financial beats First Mid-Illinois Bancshares on 14 of the 16 factors compared between the two stocks.

First Mid-Illinois Bancshares Company Profile

First Mid-Illinois Bancshares, Inc. is a financial holding company. The Company is engaged in the business of banking through its subsidiaries, First Mid-Illinois Bank & Trust, N.A. (First Mid Bank) and First Clover Leaf Bank, N.A. (First Clover Leaf Bank). The Company provides data processing services to affiliates through another subsidiary, Mid-Illinois Data Services, Inc. (MIDS). The Company offers insurance products and services to customers through its subsidiary, The Checkley Agency, Inc., doing business as First Mid Insurance Group (First Mid Insurance). The Company also owns three statutory business trusts, First Mid-Illinois Statutory Trust I (First Mid Trust I), and First Mid-Illinois Statutory Trust II (First Mid Trust II), and Clover Leaf Statutory Trust I (CLST Trust). As of December 31, 2016, the Company operated in three primary lines of business: community banking, wealth management, and insurance brokerage.

FCB Financial Company Profile

FCB Financial Holdings, Inc. is a bank holding company with a national bank subsidiary, Florida Community Bank, National Association (the Bank). The Company operates in the Community Banking segment. Through the Bank, the Company provides a range of retail and commercial banking services. As of December 31, 2016, the Company provided a range of financial products and services to individuals, small and medium-sized businesses, some large businesses, and other local organizations and entities through 46 branches in south and central Florida. The Company targets retail customers and commercial customers engaged in various industries, including healthcare and professional services; retail and wholesale trade; tourism; agricultural services; manufacturing; distribution and distribution-related industries; technology; automotive; aviation; food products; building materials; residential housing, and commercial real estate. It also offers a suite of treasury management services.

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