Contrasting National Australia Bank (OTCMKTS:NABZY) and Farmers & Merchants Bancorp (OTCMKTS:FMCB)

Farmers & Merchants Bancorp (OTCMKTS:FMCB) and National Australia Bank (OTCMKTS:NABZY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Dividends

Farmers & Merchants Bancorp pays an annual dividend of $17.60 per share and has a dividend yield of 1.7%. National Australia Bank pays an annual dividend of $0.51 per share and has a dividend yield of 4.6%. Farmers & Merchants Bancorp pays out 15.1% of its earnings in the form of a dividend.

Profitability

This table compares Farmers & Merchants Bancorp and National Australia Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bancorp	31.55%	16.20%	1.62%
National Australia Bank	N/A	N/A	N/A

Earnings & Valuation

This table compares Farmers & Merchants Bancorp and National Australia Bank’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bancorp	$268.67 million	2.78	$88.31 million	$116.37	8.68
National Australia Bank	$33.43 billion	2.09	$4.94 billion	N/A	N/A

National Australia Bank has higher revenue and earnings than Farmers & Merchants Bancorp.

Risk and Volatility

Farmers & Merchants Bancorp has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, National Australia Bank has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Farmers & Merchants Bancorp and National Australia Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmers & Merchants Bancorp	0	0	0	0	N/A
National Australia Bank	0	0	0	0	N/A

Institutional and Insider Ownership

5.6% of Farmers & Merchants Bancorp shares are owned by institutional investors. 7.8% of Farmers & Merchants Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Farmers & Merchants Bancorp beats National Australia Bank on 6 of the 11 factors compared between the two stocks.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. The company was founded in 1916 and is headquartered in Lodi, California.

About National Australia Bank

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The company operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New Zealand Banking; and Corporate Functions and Other segments. It accepts transaction accounts, savings accounts, debit cards, and term deposits; and specialized accounts, such as foreign currency, business interest, cash maximiser, farm management, community free saver, statutory trust, and project bank accounts, as well as farm management deposits. In addition, the company provides home loans, personal loans, and business loans; vehicle and equipment finance; and trade and invoice finance, as well as business overdrafts and bank guarantees. Further, it offers insurance products consisting of home and content, landlord, travel, car, caravan and trailer, life, and business insurance products; and pension, self-managed super funds, cash management, and financial planning and advisory services. Additionally, the company provides investment products; credit, debit, and business cards; payments and merchant services; online and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. The company was founded in 1834 and is based in Melbourne, Australia.