Critical Review: Carter Bank and Trust (NASDAQ:CARE) & F&M Bank (NASDAQ:FMBM)

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

Insider & Institutional Ownership

16.2% of Carter Bank and Trust shares are owned by institutional investors. Comparatively, 4.9% of F&M Bank shares are owned by institutional investors. 10.9% of F&M Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Carter Bank and Trust and F&M Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carter Bank and Trust 0 2 0 0 2.00
F&M Bank 0 0 0 0 N/A

Carter Bank and Trust presently has a consensus price target of $21.50, indicating a potential upside of 11.17%. Given Carter Bank and Trust’s higher probable upside, equities analysts plainly believe Carter Bank and Trust is more favorable than F&M Bank.


This table compares Carter Bank and Trust and F&M Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carter Bank and Trust N/A N/A N/A
F&M Bank 18.21% 9.70% 1.07%


F&M Bank pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Carter Bank and Trust does not pay a dividend.

Earnings and Valuation

This table compares Carter Bank and Trust and F&M Bank’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carter Bank and Trust $169.01 million 3.01 $11.90 million N/A N/A
F&M Bank $44.71 million 2.06 $9.09 million N/A N/A

Carter Bank and Trust has higher revenue and earnings than F&M Bank.

About Carter Bank and Trust

Carter Bank & Trust provides a range of retail and commercial banking products and services in Virginia and North Carolina. It accepts checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposit. The company also offers loans, such as secured and unsecured commercial loans; secured and unsecured consumer loans for financing automobiles, home improvements, education, and personal investments; real estate construction and acquisition loans; and fixed and variable rate mortgage loans. In addition, it provides safe deposit boxes, direct deposit of payroll and social security checks, and automated drafts for various accounts. As of December 31, 2018, the company operated 105 branches. Carter Bank & Trust is headquartered in Martinsville, Virginia.

About F&M Bank

F&M Bank Corp. operates as the bank holding company for Farmers & Merchants Bank that provides commercial banking services in Virginia. The company offers commercial and individual demand and time deposit accounts, savings accounts, checking 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; commercial, individual, and business loans; farmland loans; multifamily loans; consumer loans, such as personal loans and lines of credit, automobile loans, deposit account loans, installment and demand loans, and home equity loans and lines of credit; residential mortgage loans; credit cards; and dealer finance. In addition, the company offers brokerage services, and commercial and personal lines of insurance. Further, it originates conventional and government sponsored mortgages; and title insurance and real estate settlement services. The company operates 13 banking offices in Rockingham, Shenandoah, Page, and Augusta counties; and a loan production office located in Penn Laird. F&M Bank Corp. was founded in 1908 and is headquartered in Timberville, Virginia.

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