Contrasting Inter & Co. Inc. (NASDAQ:INTR) and Farmers National Banc (NASDAQ:FMNB)
by Kim Johansen · The Markets DailyFarmers National Banc (NASDAQ:FMNB – Get Free Report) and Inter & Co. Inc. (NASDAQ:INTR – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Valuation & Earnings
This table compares Farmers National Banc and Inter & Co. Inc.”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Farmers National Banc | $223.55 million | 4.12 | $54.59 million | $1.47 | 10.59 |
| Inter & Co. Inc. | $1.93 billion | 1.22 | $235.05 million | $0.66 | 8.11 |
Inter & Co. Inc. has higher revenue and earnings than Farmers National Banc. Inter & Co. Inc. is trading at a lower price-to-earnings ratio than Farmers National Banc, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Farmers National Banc and Inter & Co. Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Farmers National Banc | 20.52% | 12.03% | 1.21% |
| Inter & Co. Inc. | 11.23% | 14.94% | 1.57% |
Dividends
Farmers National Banc pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 2.1%. Farmers National Banc pays out 49.0% of its earnings in the form of a dividend. Inter & Co. Inc. pays out 16.7% 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.
Analyst Ratings
This is a breakdown of current ratings for Farmers National Banc and Inter & Co. Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Farmers National Banc | 0 | 2 | 1 | 0 | 2.33 |
| Inter & Co. Inc. | 0 | 3 | 3 | 0 | 2.50 |
Farmers National Banc currently has a consensus price target of $16.00, suggesting a potential upside of 2.83%. Inter & Co. Inc. has a consensus price target of $9.16, suggesting a potential upside of 71.21%. Given Inter & Co. Inc.’s stronger consensus rating and higher probable upside, analysts plainly believe Inter & Co. Inc. is more favorable than Farmers National Banc.
Volatility and Risk
Farmers National Banc has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Insider and Institutional Ownership
38.7% of Farmers National Banc shares are owned by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. shares are owned by institutional investors. 3.5% of Farmers National Banc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Inter & Co. Inc. beats Farmers National Banc on 9 of the 16 factors compared between the two stocks.
About Farmers National Banc
Farmers National Banc Corp. operates as a bank holding company for The Farmers National Bank of Canfield engages in the banking, trust, retirement consulting, insurance, and financial management businesses. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, employee benefit plans, and retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. The company was founded in 1887 and is headquartered in Canfield, Ohio.
About Inter & Co. Inc.
Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.