Critical Analysis: ServisFirst Bancshares (NYSE:SFBS) and First Bancorp of Indiana (OTCMKTS:FBPI)

ServisFirst Bancshares (NYSE:SFBS) and First Bancorp of Indiana (OTCMKTS:FBPI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

67.3% of ServisFirst Bancshares shares are held by institutional investors. 6.7% of ServisFirst Bancshares shares are held by company insiders. Comparatively, 20.0% of First Bancorp of Indiana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

ServisFirst Bancshares has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, First Bancorp of Indiana has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ServisFirst Bancshares and First Bancorp of Indiana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	2	0	0	2.00
First Bancorp of Indiana	0	0	0	0	0.00

ServisFirst Bancshares currently has a consensus target price of $90.50, indicating a potential upside of 8.32%. Given ServisFirst Bancshares’ stronger consensus rating and higher possible upside, research analysts clearly believe ServisFirst Bancshares is more favorable than First Bancorp of Indiana.

Profitability

This table compares ServisFirst Bancshares and First Bancorp of Indiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	24.62%	15.47%	1.46%
First Bancorp of Indiana	N/A	N/A	N/A

Earnings and Valuation

This table compares ServisFirst Bancshares and First Bancorp of Indiana”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$981.18 million	4.65	$227.24 million	$4.57	18.28
First Bancorp of Indiana	N/A	N/A	N/A	N/A	N/A

ServisFirst Bancshares has higher revenue and earnings than First Bancorp of Indiana.

Summary

ServisFirst Bancshares beats First Bancorp of Indiana on 8 of the 9 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

About First Bancorp of Indiana

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank, provides various banking products and services to individuals and business customers in the United States. The company accepts various deposits such as certificates of deposit, checking, health savings, individual retirement, money market, and savings accounts; loans include retail loan advisors, consumer loans, such as auto, motorcycle, boat, and recreational vehicle loans; mortgage and home equity loans; and current rates and secured deposits. It also accepts various business deposit accounts including commercial, business, small business, and community first checking accounts; lending services comprising relationship bankers; commercial real estate, equipment, owner occupied and investment real estate financing, as well as working capital line of credit, business loans, and small business administration. In addition, the company provides treasury management, online banking, merchant services, remote capture, and debit and credit card services. First Bancorp of Indiana, Inc. was founded in 1904 and is headquartered in Evansville, Indiana.