Comparing S&T Bancorp (NASDAQ:STBA) & First Mid Bancshares (NASDAQ:FMBH)

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

Profitability

This table compares S&T Bancorp and First Mid Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&T Bancorp	24.20%	10.63%	1.43%
First Mid Bancshares	16.75%	10.43%	1.07%

Valuation & Earnings

This table compares S&T Bancorp and First Mid Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&T Bancorp	$535.52 million	2.94	$144.78 million	$3.53	11.65
First Mid Bancshares	$306.31 million	2.95	$68.93 million	$3.10	12.20

S&T Bancorp has higher revenue and earnings than First Mid Bancshares. S&T 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.

Analyst Recommendations

This is a breakdown of recent ratings for S&T Bancorp and First Mid Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&T Bancorp	0	1	0	0	2.00
First Mid Bancshares	0	0	4	0	3.00

S&T Bancorp currently has a consensus target price of $41.00, indicating a potential downside of 0.29%. First Mid Bancshares has a consensus target price of $37.25, indicating a potential downside of 1.53%. Given S&T Bancorp’s higher possible upside, equities analysts plainly believe S&T Bancorp is more favorable than First Mid Bancshares.

Insider and Institutional Ownership

65.2% of S&T Bancorp shares are held by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are held by institutional investors. 1.4% of S&T Bancorp shares are held by company insiders. Comparatively, 7.7% of First Mid Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

S&T Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 3.2%. First Mid Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. S&T Bancorp pays out 37.4% of its earnings in the form of a dividend. First Mid Bancshares pays out 31.0% 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. S&T Bancorp has increased its dividend for 11 consecutive years. S&T Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

S&T Bancorp has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

S&T Bancorp beats First Mid Bancshares on 10 of the 17 factors compared between the two stocks.

About S&T Bancorp

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that engages in the provision of retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

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.