Camden National (NASDAQ:CAC) and First Midwest Bancorp (NASDAQ:FMBI) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Camden National pays an annual dividend of $1.32 per share and has a dividend yield of 3.9%. First Midwest Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. Camden National pays out 35.8% of its earnings in the form of a dividend. First Midwest Bancorp pays out 28.3% 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. Camden National has raised its dividend for 7 consecutive years and First Midwest Bancorp has raised its dividend for 7 consecutive years. First Midwest Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Camden National and First Midwest Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Midwest Bancorp||19.76%||8.10%||1.05%|
This is a breakdown of current ratings and target prices for Camden National and First Midwest Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Midwest Bancorp||0||3||3||0||2.50|
Camden National currently has a consensus target price of $48.00, indicating a potential upside of 43.03%. First Midwest Bancorp has a consensus target price of $17.50, indicating a potential upside of 32.78%. Given Camden National’s higher probable upside, equities research analysts plainly believe Camden National is more favorable than First Midwest Bancorp.
Insider & Institutional Ownership
66.3% of Camden National shares are owned by institutional investors. Comparatively, 80.7% of First Midwest Bancorp shares are owned by institutional investors. 2.2% of Camden National shares are owned by company insiders. Comparatively, 1.1% of First Midwest Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Camden National and First Midwest Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Camden National||$210.63 million||2.38||$57.20 million||$3.69||9.09|
|First Midwest Bancorp||$861.62 million||1.75||$199.74 million||$1.98||6.66|
First Midwest Bancorp has higher revenue and earnings than Camden National. First Midwest Bancorp is trading at a lower price-to-earnings ratio than Camden National, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Camden National has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, First Midwest Bancorp has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Camden National Company Profile
Camden National Corporation operates as the holding company for Camden National Bank that provides commercial and consumer banking products and services to consumer, institutional, municipal, non-profit, and commercial customers. It offers various deposit products, including demand, checking, saving, and money market accounts; and time deposits, as well as certificates of deposit. The company also originates single family and multi-family residential loans, commercial real estate loans, business loans, municipal loans, and various consumer loans, as well as loans for the construction of residential homes, multi-family properties, and commercial real estate properties; and commercial lending to the small business medical field, including dentists, optometrists, and veterinarians. As of December 31, 2018, the Bank had 60 branches in 16 counties; 71 ATMs; commercial loan production offices in Manchester and Portsmouth, New Hampshire; and a mortgage loan production office in Braintree, Massachusetts. In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of investment management, financial planning, fiduciary, asset management, and wealth management services, as well as serves as trustee. The company was founded in 1875 and is headquartered in Camden, Maine.
First Midwest Bancorp Company Profile
First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. In addition, the company offers treasury management products and services comprising automated clearing house collection, lockbox, remote deposit capture, and financial electronic data interchange; wire transfer, account reconciliation, controlled disbursement, direct deposit, and positive pay services; information reporting services; corporate credit cards; and liquidity management, fraud prevention, and merchant services. Further, it provides fiduciary and executor, financial planning, investment advisory, employee benefit plan, and private banking services to corporate and public retirement plans, foundations and endowments, high net worth individuals, and multi-employer trust funds. Additionally, the company offers debit and automated teller machine, and credit cards; Internet and mobile, and telephone banking services; and financial education services. It serves commercial and industrial, commercial real estate, municipal, and consumer customers. The company operates 120 locations and 177 automated teller machines in greater Chicago metropolitan area, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.
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