Reviewing First Mid Bancshares (NASDAQ:FMBH) & NSTS Bancorp (NASDAQ:NSTS)

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

Volatility and Risk

NSTS Bancorp has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NSTS Bancorp	-4.25%	-0.73%	-0.20%
First Mid Bancshares	18.77%	10.27%	1.19%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NSTS Bancorp and First Mid Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSTS Bancorp	1	0	0	0	1.00
First Mid Bancshares	0	1	5	1	3.00

First Mid Bancshares has a consensus price target of $42.80, suggesting a potential upside of 1.23%. Given First Mid Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe First Mid Bancshares is more favorable than NSTS Bancorp.

Valuation and Earnings

This table compares NSTS 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
NSTS Bancorp	$12.24 million	5.02	-$790,000.00	($0.12)	-97.67
First Mid Bancshares	$453.67 million	2.24	$78.90 million	$3.65	11.58

First Mid Bancshares has higher revenue and earnings than NSTS Bancorp. NSTS 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.

Insider and Institutional Ownership

23.7% of NSTS Bancorp shares are owned by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are owned by institutional investors. 6.2% of NSTS Bancorp shares are owned by insiders. Comparatively, 5.2% of First Mid Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

First Mid Bancshares beats NSTS Bancorp on 13 of the 15 factors compared between the two stocks.

About NSTS Bancorp

NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.

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.