F & M Bank (OTCMKTS:FMBM – Get Free Report) and Pioneer Bancorp (NASDAQ:PBFS – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Profitability
This table compares F & M Bank and Pioneer Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| F & M Bank | 14.96% | 11.96% | 0.89% |
| Pioneer Bancorp | 16.02% | 6.43% | 0.95% |
Earnings and Valuation
This table compares F & M Bank and Pioneer Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| F & M Bank | $78.92 million | 1.54 | $11.23 million | $3.38 | 10.06 |
| Pioneer Bancorp | $31.81 million | 11.50 | $6.45 million | $0.80 | 18.24 |
F & M Bank has higher revenue and earnings than Pioneer Bancorp. F & M Bank is trading at a lower price-to-earnings ratio than Pioneer Bancorp, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
F & M Bank has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Pioneer Bancorp has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Insider & Institutional Ownership
3.9% of F & M Bank shares are held by institutional investors. 10.7% of F & M Bank shares are held by insiders. Comparatively, 2.8% of Pioneer Bancorp shares are held by 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for F & M Bank and Pioneer Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| F & M Bank | 0 | 0 | 0 | 0 | 0.00 |
| Pioneer Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Summary
Pioneer Bancorp beats F & M Bank on 7 of the 13 factors compared between the two stocks.
About F & M Bank
F & M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides financial products and services to consumers and businesses in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, money market accounts, internet and mobile banking services, and drive-in banking services. It also provides construction loans, including residential, and land acquisition and development loans; commercial real estate loans; business loans; consumer loans, such as personal loans, automobile loans, deposit account loans, installment and demand loans, and home equity loans; residential mortgage loans; credit cards; dealer finance; farmland loans; multi-family loans; and commercial and industrial loans. In addition, the company offers brokerage services and commercial and personal insurance products. Further, it originates conventional and government agency sponsored mortgages; and offers title insurance and real estate settlement services. The company was founded in 1908 and is headquartered in Timberville, Virginia.
About Pioneer Bancorp
Pioneer Bancorp, Inc. operates as a holding company for Pioneer Savings Bank that provides various banking products and services in New York. The company accepts various deposit products, such as demand, savings, and money market accounts, as well as certificates of deposit accounts. Its loan products include commercial real estate, commercial and industrial, commercial construction, residential mortgage lending, consumer loans, and home equity lines of credit. The company also invests in the U.S. governmental securities, fixed rate collateralized mortgage obligations, mortgage-backed securities, fixed-rate investment grade bonds, and equity securities. In addition, the company offers personal and commercial insurance products, including homeowners, automobile, and comprehensive business insurance; employee benefit products and services, such as group health, dental, disability, and life insurance products, as well as defined contribution, defined benefit administration, and human resource management services; and wealth management services comprising investment advice, retirement income planning, estate planning, business succession, and employer retirement planning. The company was founded in 1889 and is based in Albany, New York. Pioneer Bancorp, Inc. operates as a subsidiary of Pioneer Bancorp, MHC.
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