Financial Comparison: Northeast Community Bancorp (NASDAQ:NECB) versus First Mid Bancshares (NASDAQ:FMBH)

First Mid Bancshares (NASDAQ:FMBH) and Northeast Community Bancorp (NASDAQ:NECB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

47.6% of First Mid Bancshares shares are owned by institutional investors. Comparatively, 53.2% of Northeast Community Bancorp shares are owned by institutional investors. 6.0% of First Mid Bancshares shares are owned by insiders. Comparatively, 7.1% of Northeast Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares First Mid Bancshares and Northeast Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Mid Bancshares	20.87%	11.41%	1.35%
Northeast Community Bancorp	27.21%	11.44%	1.96%

Earnings & Valuation

This table compares First Mid Bancshares and Northeast Community Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Mid Bancshares	$466.04 million	2.93	$91.75 million	$4.34	11.82
Northeast Community Bancorp	$158.21 million	2.53	$44.41 million	$3.04	9.58

First Mid Bancshares has higher revenue and earnings than Northeast Community Bancorp. Northeast Community Bancorp 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.

Risk & Volatility

First Mid Bancshares has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Dividends

First Mid Bancshares pays an annual dividend of $1.04 per share and has a dividend yield of 2.0%. Northeast Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. First Mid Bancshares pays out 24.0% of its earnings in the form of a dividend. Northeast Community Bancorp pays out 32.9% 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 Mid Bancshares has raised its dividend for 3 consecutive years and Northeast Community Bancorp has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Mid Bancshares and Northeast Community Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Mid Bancshares	0	2	3	1	2.83
Northeast Community Bancorp	0	1	2	2	3.20

First Mid Bancshares currently has a consensus price target of $55.50, indicating a potential upside of 8.14%. Northeast Community Bancorp has a consensus price target of $30.25, indicating a potential upside of 3.92%. Given First Mid Bancshares’ higher possible upside, research analysts plainly believe First Mid Bancshares is more favorable than Northeast Community Bancorp.

Summary

First Mid Bancshares beats Northeast Community Bancorp on 10 of the 18 factors compared between the two stocks.

About First Mid Bancshares

First Mid Bancshares, Inc. is a financial holding company headquartered in Mattoon, Illinois. Its principal subsidiary, First Mid Bank & Trust, provides personal and business banking services, including deposit accounts, lending, mortgage financing and agricultural banking. The company also offers wealth management and trust services, along with insurance products through its insurance businesses. Its operations serve customers in Illinois and other markets in the Midwest, as well as Texas. First Mid traces its roots to 1865, when a bank was established in Mattoon.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. is the holding company for NorthEast Community Bank, a community bank headquartered in White Plains, New York. The bank traces its roots to 1934 and serves individuals and businesses in the New York metropolitan area, including communities in New York, New Jersey and Massachusetts. The bank offers deposit accounts and other traditional banking services, along with lending for multifamily and commercial real estate, construction, commercial businesses and residential properties.