First Internet Bancorp (NASDAQ:INBK) vs. First Bank (NASDAQ:FRBA) Head to Head Comparison

First Bank (NASDAQ:FRBA) and First Internet Bancorp (NASDAQ:INBK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares First Bank and First Internet Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bank	$245.83 million	1.62	$43.66 million	$1.74	9.11
First Internet Bancorp	$322.87 million	0.55	-$35.17 million	($4.03)	-5.01

First Bank has higher earnings, but lower revenue than First Internet Bancorp. First Internet Bancorp is trading at a lower price-to-earnings ratio than First Bank, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

First Bank has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

64.9% of First Bank shares are held by institutional investors. Comparatively, 65.5% of First Internet Bancorp shares are held by institutional investors. 13.1% of First Bank shares are held by company insiders. Comparatively, 8.0% of First Internet Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares First Bank and First Internet Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bank	17.76%	10.32%	1.10%
First Internet Bancorp	-10.05%	-1.54%	-0.10%

Analyst Recommendations

This is a summary of current recommendations and price targets for First Bank and First Internet Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bank	0	2	2	0	2.50
First Internet Bancorp	2	2	1	0	1.80

First Bank currently has a consensus price target of $17.75, indicating a potential upside of 11.92%. First Internet Bancorp has a consensus price target of $25.17, indicating a potential upside of 24.53%. Given First Internet Bancorp’s higher possible upside, analysts clearly believe First Internet Bancorp is more favorable than First Bank.

Dividends

First Bank pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. First Bank pays out 20.7% of its earnings in the form of a dividend. First Internet Bancorp pays out -6.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

First Bank beats First Internet Bancorp on 11 of the 16 factors compared between the two stocks.

About First Bank

First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.

About First Internet Bancorp

First Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides commercial, small business, consumer, and municipal banking products and services to individuals and commercial customers in the United States. The company accepts non-interest bearing and interest-bearing demand deposit, commercial deposit, savings, money market, and Banking-as-a-Service brokered deposit accounts, as well as certificates of deposit. It also offers commercial and industrial, owner-occupied and investor commercial real estate, construction, residential mortgage, home equity, line of credit and home improvement, small installment, term, and other consumer loans, as well as single tenant lease financing, and public and healthcare finance; franchise finance; and small business lending. In addition, the company is involved in the purchase, manage, service, and safekeeping of municipal securities; and provision of public and municipal lending and leasing products to government entities. Further, the company offers corporate credit card and treasury management services. First Internet Bancorp was founded in 1998 and is headquartered in Fishers, Indiana.