Horizon Bancorp (NASDAQ:HBNC) and Benchmark Bankshares (OTCMKTS:BMBN) Critical Comparison

Horizon Bancorp (NASDAQ:HBNC) and Benchmark Bankshares (OTCMKTS:BMBN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility & Risk

Horizon Bancorp has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Earnings & Valuation

This table compares Horizon Bancorp and Benchmark Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Bancorp	$203.08 million	3.27	$35.43 million	$1.02	14.80
Benchmark Bankshares	$73.53 million	1.58	$15.85 million	N/A	N/A

Horizon Bancorp has higher revenue and earnings than Benchmark Bankshares.

Dividends

Horizon Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 4.2%. Benchmark Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 3.4%. Horizon Bancorp pays out 62.7% of its earnings in the form of a dividend.

Profitability

This table compares Horizon Bancorp and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horizon Bancorp	9.86%	8.48%	0.79%
Benchmark Bankshares	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Horizon Bancorp and Benchmark Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Bancorp	0	2	1	0	2.33
Benchmark Bankshares	0	0	0	0	0.00

Horizon Bancorp presently has a consensus target price of $17.33, indicating a potential upside of 14.79%. Given Horizon Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Horizon Bancorp is more favorable than Benchmark Bankshares.

Institutional and Insider Ownership

64.5% of Horizon Bancorp shares are owned by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are owned by institutional investors. 2.8% of Horizon Bancorp shares are owned by insiders. Comparatively, 14.0% of Benchmark Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Horizon Bancorp beats Benchmark Bankshares on 12 of the 14 factors compared between the two stocks.

About Horizon Bancorp

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits. It also provides commercial, residential real estate, mortgage, home equity, auto, personal, business, agricultural, and SBA loans, as well as credit cards. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; debit cards; treasury management; online and mobile banking; wealth, retirement, and estate and trust services; and sells various insurance products. It operates through full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.