City Holding vs Farmer Mac

This page compares City Holding Co and Federal Agricultural Mortgage Corp, examining business models, financial performance, and market context in a clear, neutral way. You will find focused insights on how each organisation operates, the markets they serve, and the factors shaping their relative positions. Educational content, not financial advice.

This page compares City Holding Co and Federal Agricultural Mortgage Corp, examining business models, financial performance, and market context in a clear, neutral way. You will find focused insights ...

Comparison Snapshot

Key Financial Metrics

CHCO

Metric

AGM

$1.75B

Market Cap

$1.78B

3.49%

Potential Profit

30.00%

Hold

Analyst Rating

Buy

Investment Analysis

City Holding

CHCO

Pros

City Holding Co. has demonstrated consistent profitability, with net income rising in recent quarters and a solid return on equity.
The company maintains a relatively low beta, indicating less volatility compared to the broader market, which may appeal to conservative investors.
City Holding Co. has a history of regular dividend increases, reflecting management's confidence in sustained earnings and cash flow.

Considerations

The stock has underperformed the S&P 500 over the past year and longer periods, suggesting weaker relative momentum.
Analyst consensus is a 'Hold' rating, with limited upside forecast and no strong buy recommendations from major analysts.
City Holding Co. trades at a premium valuation compared to some industry peers, which could limit near-term capital appreciation.

Farmer Mac

AGM

Pros

Farmer Mac offers a high dividend yield, making it attractive for income-focused investors seeking regular returns.
The company plays a unique role in providing liquidity to agricultural and rural infrastructure finance, benefiting from a niche market position.
Farmer Mac's P/E ratio is below the broader market average, suggesting a relatively undervalued profile based on current earnings.

Considerations

The stock is exposed to risks associated with agricultural commodity cycles and rural economic conditions, which can be volatile.
Farmer Mac's market capitalisation is relatively small, which may result in lower liquidity and higher price volatility.
The company's performance is closely tied to government policy and regulatory changes affecting agricultural finance.

About The Companies

City Holding (CHCO)

City Holding Co (CHCO) is a regional bank holding company with a market capitalisation of about $1.74 billion. It operates community banks offering deposit accounts, commercial and consumer lending, mortgage services and wealth-management products. Investors often watch CHCO for loan-growth trends, net interest margin movements and deposit cost dynamics — all sensitive to the prevailing interest-rate environment. The company has historically focused on local market relationships and conservative underwriting, which can support credit quality but also limits rapid scale. Potential positives include steady fee income, incremental margin improvement in a rising-rate setting and selective acquisitions to expand the footprint. Key risks are cyclical loan demand, rising funding costs, regulatory oversight and the possibility of credit stress in an economic slowdown. This summary is educational only and not investment advice; investors should assess suitability, review the latest financials, and consider their risk tolerance before acting.

Farmer Mac (AGM)

Federal Agricultural Mortgage Corporation, often known as 'Farmer Mac', is a unique entity in the US financial landscape. It's a stockholder-owned company but was chartered by the U.S. Congress to establish a secondary market for agricultural and rural loans. Its mission is to increase the availability of long-term credit for American farmers, ranchers, and rural communities. Farmer Mac achieves this by purchasing eligible loans from lenders, which provides them with liquidity to make new loans. Its business is diversified across several segments, including traditional farm and ranch loans, corporate agribusiness finance, renewable energy projects, and rural utilities like power and broadband. For investors, it represents a specialised way to gain exposure to the financial health and development of rural America. As with any investment, its value can rise and fall and returns are not guaranteed.

Which Baskets Do They Appear In?

Profiting From The Fed's Firm Stance

The Federal Reserve has held interest rates steady, with Chair Jerome Powell pushing back on expectations for a near-term cut. This creates an investment opportunity in companies that can thrive in a sustained high-interest-rate environment due to strong balance sheets and pricing power.

Published: July 31, 2025

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Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

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Which Baskets Do They Appear In?

Profiting From The Fed's Firm Stance

The Federal Reserve has held interest rates steady, with Chair Jerome Powell pushing back on expectations for a near-term cut. This creates an investment opportunity in companies that can thrive in a sustained high-interest-rate environment due to strong balance sheets and pricing power.

Published: July 31, 2025

Explore Basket

Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

Explore Basket

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Comparison Snapshot