Critical Analysis: Oxford Bank (OTCMKTS:OXBC) vs. First Mid Bancshares (NASDAQ:FMBH)

First Mid Bancshares (NASDAQ:FMBH) and Oxford Bank (OTCMKTS:OXBC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for First Mid Bancshares and Oxford Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Mid Bancshares	0	3	3	0	2.50
Oxford Bank	0	0	0	0	0.00

First Mid Bancshares currently has a consensus price target of $49.50, suggesting a potential upside of 5.32%. Given First Mid Bancshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe First Mid Bancshares is more favorable than Oxford Bank.

Volatility & Risk

First Mid Bancshares has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Oxford Bank has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Insider and Institutional Ownership

47.6% of First Mid Bancshares shares are owned by institutional investors. Comparatively, 4.5% of Oxford Bank shares are owned by institutional investors. 6.0% of First Mid Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares First Mid Bancshares and Oxford Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Mid Bancshares	19.95%	10.44%	1.23%
Oxford Bank	15.06%	N/A	N/A

Earnings and Valuation

This table compares First Mid Bancshares and Oxford Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Mid Bancshares	$466.04 million	2.68	$91.75 million	$3.97	11.84
Oxford Bank	$62.26 million	1.73	$10.96 million	$3.92	11.10

First Mid Bancshares has higher revenue and earnings than Oxford Bank. Oxford Bank 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.

Summary

First Mid Bancshares beats Oxford Bank on 14 of the 14 factors compared between the two stocks.

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.

About Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.