WallStSmart

Farmers & Merchants Bancorp Inc (FMAO)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 21976% more annual revenue ($26.35B vs $119.38M). USB leads profitability with a 28.7% profit margin vs 27.9%. FMAO trades at a lower P/E of 10.3x. USB earns a higher WallStSmart Score of 75/100 (B).

FMAO

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 8.3Quality: 5.0

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FMAOUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$91.56

Current Price

$25.10

$66.46 discount

UndervaluedFair: $91.56Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FMAO5 strengths · Avg: 9.4/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.8%10/10

Strong operational efficiency at 44.8%

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

FMAO1 concerns · Avg: 3.0/10
Market CapQuality
$343.89M3/10

Smaller company, higher risk/reward

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : FMAO

The strongest argument for FMAO centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 27.9% and operating margin at 44.8%. Revenue growth of 20.0% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : FMAO

The primary concerns for FMAO are Market Cap.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

FMAO profiles as a growth stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.04 — expect wider price swings.

FMAO is growing revenue faster at 20.0% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

USB scores higher overall (75/100 vs 65/100), backed by strong 28.7% margins. FMAO offers better value entry with a 69.7% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Farmers & Merchants Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Farmers & Merchants Bancorp, Inc. is the banking holding company for The Farmers & Merchants State Bank providing commercial banking services to individuals and small businesses in Northwest Ohio and Northeast Indiana. The company is headquartered in Archbold, Ohio.

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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