Farmers & Merchants Bancorp, Inc. (OH) (NASDAQ:FMAO) versus Magyar Bancorp (NASDAQ:MGYR) Head to Head Comparison

Farmers & Merchants Bancorp, Inc. (OH) (NASDAQ:FMAO) and Magyar Bancorp (NASDAQ:MGYR) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Farmers & Merchants Bancorp, Inc. (OH) and Magyar Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmers & Merchants Bancorp, Inc. (OH) 23.86% 9.22% 1.28%
Magyar Bancorp 10.01% 5.46% 0.45%

Dividends

Farmers & Merchants Bancorp, Inc. (OH) pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Magyar Bancorp does not pay a dividend. Farmers & Merchants Bancorp, Inc. (OH) pays out 35.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

18.1% of Farmers & Merchants Bancorp, Inc. (OH) shares are owned by institutional investors. Comparatively, 18.0% of Magyar Bancorp shares are owned by institutional investors. 10.0% of Farmers & Merchants Bancorp, Inc. (OH) shares are owned by insiders. Comparatively, 3.9% of Magyar Bancorp shares are owned by 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.

Volatility and Risk

Farmers & Merchants Bancorp, Inc. (OH) has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.

Earnings and Valuation

This table compares Farmers & Merchants Bancorp, Inc. (OH) and Magyar Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmers & Merchants Bancorp, Inc. (OH) $57.29 million 4.89 $14.95 million $1.68 15.00
Magyar Bancorp $26.47 million 2.52 $2.03 million N/A N/A

Farmers & Merchants Bancorp, Inc. (OH) has higher revenue and earnings than Magyar Bancorp.

Analyst Ratings

This is a summary of recent ratings for Farmers & Merchants Bancorp, Inc. (OH) and Magyar Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmers & Merchants Bancorp, Inc. (OH) 0 1 0 0 2.00
Magyar Bancorp 0 0 0 0 N/A

Summary

Farmers & Merchants Bancorp, Inc. (OH) beats Magyar Bancorp on 10 of the 12 factors compared between the two stocks.

About Farmers & Merchants Bancorp, Inc. (OH)

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking accounts; savings and time deposits, including certificates of deposit; and custodial services for individual retirement accounts and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farm land, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvements loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as operation lines of credit and machinery purchase loans; and agricultural and consumer real estate, commercial and industrial, agricultural, and consumer loans, as well as industrial development bonds. Further, it provides automated teller machine services; and online banking, remote deposit capture or electronic deposit processing, merchant credit card, and mobile banking services. As of February 13, 2019, the company operated through 30 offices. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is based in Archbold, Ohio.

About Magyar Bancorp

Magyar Bancorp, Inc. operates as the mid-tier stock holding company for Magyar Bank that provides various banking products and services to families and businesses in New Jersey, the United States. Its product portfolio includes various deposit products, such as demand, NOW, money market, savings, and retirement accounts, as well as certificates of deposit; and loan products comprising one-to four-family residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, small business administration loans, and construction loans, as well as consumer loans, which primarily include secured demand loans. The company also provides non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and investment securities. It operates through seven branch locations in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison; and a loan product office in New Jersey. The company was founded in 1922 and is headquartered in New Brunswick, New Jersey. Magyar Bancorp, Inc. is a subsidiary of Magyar Bancorp, MHC.

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