FMBH vs NBTB

For growth investors, NBT Bancorp Inc.

(NBTB) is the stronger pick with 10. 4% 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 NBT Bancorp Inc. at 13. 5x. 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 NBT Bancorp Inc. 's 1. 53x — a reasonable growth-adjusted valuation.

Over the past 5 years, NBT Bancorp Inc.

(NBTB) delivered a total return of +29. 9%, compared to +10. 2% for First Mid Bancshares, Inc. (FMBH). Over 10 years, the gap is even starker: FMBH returned +107. 3% versus NBTB's +102. 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), NBT Bancorp Inc.

(NBTB) is the lower-risk stock at 0. 89β versus First Mid Bancshares, Inc. 's 0. 92β — meaning FMBH is approximately 3% more volatile than NBTB relative to the S&P 500. On balance sheet safety, NBT Bancorp Inc. (NBTB) carries a lower debt/equity ratio of 17% versus 59% for First Mid Bancshares, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NBT Bancorp Inc.

(NBTB) is pulling ahead at 10. 4% 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 12. 5% for NBT Bancorp 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 19. 5% for NBT Bancorp Inc. — meaning it keeps 19. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NBTB leads at 25. 3% versus 25. 1% for FMBH. At the gross margin level — before operating expenses — FMBH leads at 72. 8%, 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 NBT Bancorp Inc. 's 1. 53x. 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 10. 8x for NBT Bancorp Inc. — 0. 4x 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.

NBT Bancorp Inc. (NBTB) offers the highest yield at 3. 2%, versus 2. 2% for First Mid Bancshares, Inc. (FMBH).

For long-horizon retirement investors, NBT Bancorp Inc.

(NBTB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 89), 3. 2% yield, +102. 2% 10Y return). Both have compounded well over 10 years (NBTB: +102. 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.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.