FMBH vs MGEE

For growth investors, MGE Energy, Inc.

(MGEE) is the stronger pick with 9. 9% revenue growth year-over-year, versus 4. 2% for First Mid Bancshares, Inc. (FMBH). First Mid Bancshares, Inc. (FMBH) offers the better valuation at 11. 4x trailing P/E (10. 4x forward), making it the more compelling value choice. Analysts rate First Mid Bancshares, Inc. (FMBH) a "Hold" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, First Mid Bancshares, Inc.

(FMBH) is the cheapest at 11. 4x versus MGE Energy, Inc. at 20. 1x. On forward P/E, First Mid Bancshares, Inc. is actually cheaper at 10. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: First Mid Bancshares, Inc. wins at 1. 44x versus MGE Energy, Inc. 's 2. 55x — a reasonable growth-adjusted valuation.

Over the past 5 years, MGE Energy, Inc.

(MGEE) delivered a total return of +11. 2%, compared to +10. 2% for First Mid Bancshares, Inc. (FMBH). Over 10 years, the gap is even starker: FMBH returned +107. 3% versus MGEE's +73. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), MGE Energy, Inc.

(MGEE) is the lower-risk stock at 0. 16β versus First Mid Bancshares, Inc. 's 0. 92β — meaning FMBH is approximately 479% more volatile than MGEE relative to the S&P 500. On balance sheet safety, First Mid Bancshares, Inc. (FMBH) carries a lower debt/equity ratio of 59% versus 72% for MGE Energy, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MGE Energy, Inc.

(MGEE) is pulling ahead at 9. 9% versus 4. 2% for First Mid Bancshares, Inc. (FMBH). On earnings-per-share growth, the picture is similar: First Mid Bancshares, Inc. grew EPS 16. 1% year-over-year, compared to 11. 7% for MGE Energy, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

First Mid Bancshares, Inc.

(FMBH) is the more profitable company, earning 19. 7% net margin versus 18. 3% for MGE Energy, Inc. — meaning it keeps 19. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FMBH leads at 25. 1% versus 22. 9% for MGEE. At the gross margin level — before operating expenses — MGEE leads at 97. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, First Mid Bancshares, Inc. (FMBH) is the more undervalued stock at a PEG of 1. 44x versus MGE Energy, Inc. 's 2. 55x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, First Mid Bancshares, Inc. (FMBH) trades at 10. 4x forward P/E versus 18. 9x for MGE Energy, Inc. — 8. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FMBH: 13. 6% to $49. 67.

All stocks in this comparison pay dividends.

MGE Energy, Inc. (MGEE) offers the highest yield at 2. 5%, versus 2. 2% for First Mid Bancshares, Inc. (FMBH).

For long-horizon retirement investors, MGE Energy, Inc.

(MGEE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 16), 2. 5% yield). Both have compounded well over 10 years (MGEE: +73. 2%, FMBH: +107. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (FMBH (Financial Services) and MGEE (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FMBH is a small-cap deep-value stock; MGEE is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.