Banner (NASDAQ:BANR – Get a rating) and First Internet Bancorp (NASDAQ: INBK – Get a rating) are both small cap finance companies, but which is the better company? We’ll compare the two companies based on valuation strength, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional and insider ownership
85.0% of Banner’s shares are held by institutional investors. By comparison, 70.5% of First Internet Bancorp’s shares are held by institutional investors. 1.5% of Banner’s stock is held by insiders of the company. By comparison, 7.2% of First Internet Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Banner and First Internet Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|First internet bank||0||0||3||0||3.00|
Banner currently has a consensus target price of $65.33, suggesting a potential upside of 19.44%. First Internet Bancorp has a consensus target price of $58.67, suggesting a potential upside of 56.82%. Given First Internet Bancorp’s higher consensus rating and higher upside potential, analysts clearly believe that First Internet Bancorp is more favorable than Banner.
Banner pays an annual dividend of $1.76 per share and has a dividend yield of 3.2%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Banner pays 30.8% of its profits as a dividend. First Internet Bancorp pays 4.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Banner has increased its dividend for 1 consecutive years. Banner is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Valuation and benefits
This chart compares revenue, earnings per share (EPS), and valuation of Banner and First Internet Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Banner||$616.92 million||3.05||$201.05 million||$5.71||9.58|
|First internet bank||$166.73 million||2.17||$48.11 million||$4.91||7.62|
Banner has higher revenue and earnings than First Internet Bancorp. First Internet Bancorp trades at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
Banner has a beta of 1.03, suggesting its stock price is 3% more volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.73, suggesting its stock price is 27% less volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Banner and First Internet Bancorp.
|Net margins||Return on equity||return on assets|
|First internet bank||29.10%||13.17%||1.16%|
Banner beats First Internet Bancorp on 12 out of 18 factors compared between the two stocks.
Company profile banner (Get a rating)
Banner Corporation operates as a bank holding company for Banner Bank which provides commercial banking and financial products and services to individuals, businesses and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts and certificates of deposit, as well as cash management services and savings plans. pension saving. The Company also offers commercial real estate loans, including real estate loans for homeowners, investment properties and multi-family residential properties; loans for construction, land and land development; residential mortgage loans; commercial business loans; agricultural loans; and consumer and other loans, such as home equity lines of credit, car, boat and recreational vehicle loans, and loans secured by deposit accounts. In addition, it is engaged in mortgage banking business through the origination and sale of one to four family and multi-family residential loans, as well as small business administration loans. Additionally, the company provides electronic and digital banking services. As of December 31, 2021, it operated 150 branches and 18 loan origination offices located in Washington, Oregon, California, Idaho and Utah. Banner Corporation was founded in 1890 and is headquartered in Walla Walla, Washington.
First Internet Bancorp Company Profile (Get a rating)
First Internet Bancorp operates as a bank holding company for First Internet Bank of Indiana which provides commercial and retail banking products and services to personal and business customers in the United States. The company accepts interest-bearing and unpaid demand deposits, savings accounts, money market accounts and traded deposit accounts, as well as certificates of deposit. It also offers commercial and industrial real estate, homeownership and investors, construction, residential mortgages, home equity and home improvement, small installments, term loans and other consumer loans, as well as single-tenant lease financing and public and healthcare financing; franchise financing; and small business loans. In addition, the company is involved in the purchase, management, service and custody of municipal securities; and the provision of municipal credit and leasing products to government entities. In addition, it offers corporate credit card and cash management services. The company provides its services through its website firstib.com. First Internet Bancorp was founded in 1999 and is based in Fishers, Indiana.
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