Reviewing F & M Bank (OTCMKTS:FMBM) & Blue Ridge Bankshares (NASDAQ:BRBS)

F & M Bank (OTCMKTS:FMBM) and Blue Ridge Bankshares (NASDAQ:BRBS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares F & M Bank and Blue Ridge Bankshares’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F & M Bank	$66.48 million	1.20	$2.77 million	$0.84	27.02
Blue Ridge Bankshares	$104.04 million	0.62	-$51.77 million	($3.66)	-0.76

F & M Bank has higher earnings, but lower revenue than Blue Ridge Bankshares. Blue Ridge Bankshares is trading at a lower price-to-earnings ratio than F & M Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

F & M Bank pays an annual dividend of $1.04 per share and has a dividend yield of 4.6%. Blue Ridge Bankshares pays an annual dividend of $0.49 per share and has a dividend yield of 17.6%. F & M Bank pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blue Ridge Bankshares pays out -13.4% of its earnings in the form of a dividend. Blue Ridge Bankshares has increased its dividend for 10 consecutive years. Blue Ridge Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

F & M Bank has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Blue Ridge Bankshares has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for F & M Bank and Blue Ridge Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F & M Bank	0	0	0	0	N/A
Blue Ridge Bankshares	0	0	0	0	N/A

Insider & Institutional Ownership

3.8% of F & M Bank shares are owned by institutional investors. Comparatively, 50.5% of Blue Ridge Bankshares shares are owned by institutional investors. 10.7% of F & M Bank shares are owned by company insiders. Comparatively, 8.0% of Blue Ridge Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares F & M Bank and Blue Ridge Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F & M Bank	8.00%	7.49%	0.44%
Blue Ridge Bankshares	-32.61%	-28.09%	-1.98%

Summary

F & M Bank beats Blue Ridge Bankshares on 8 of the 14 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 Blue Ridge Bankshares

Blue Ridge Bankshares, Inc. operates as a bank holding company for the Blue Ridge Bank, National Association that provides commercial and consumer banking, and financial services. It operates through: Commercial Banking and Mortgage Banking segments. The company accepts checking, savings, money market, cash management, and individual retirement accounts, as well as certificates of deposit. It also offers commercial and industrial, residential mortgages, commercial mortgages, home equity, consumer installment, and guaranteed government loans; and residential mortgage loans and mortgages loans on real estate. In addition, it provides wire, direct deposit payroll, remote deposit, electronic statement, and other services; and property and casualty insurance products to individuals and businesses, as well as online, mobile, and telephone banking services. Further, the company offers employee benefit plans and administration services; management services for personal and corporate trusts, including estate planning and settlement, and trust administration, investment and wealth management services. It operates in Callao, Charlottesville, Chester, Colonial Heights, Culpeper, Fredericksburg, Gordonsville, Harrisonburg, Hartfield, Henrico, Kilmarnock, Louisa, Luray, Martinsville, Midlothian, Mineral, Montross, Orange, Petersburg, Richmond, Shenandoah, Suffolk, Virginia Beach, Warsaw, and White Stone, Virginia; and Greensboro, North Carolina. The company was founded in 1893 and is headquartered in Charlottesville, Virginia.