Analyzing First Bancorp of Indiana (OTCMKTS:FBPI) & Southern Missouri Bancorp (NASDAQ:SMBC)

Southern Missouri Bancorp (NASDAQ:SMBC) and First Bancorp of Indiana (OTCMKTS:FBPI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

49.5% of Southern Missouri Bancorp shares are held by institutional investors. 15.8% of Southern Missouri Bancorp 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Southern Missouri Bancorp and First Bancorp of Indiana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Missouri Bancorp	0	2	2	0	2.50
First Bancorp of Indiana	0	0	0	0	0.00

Southern Missouri Bancorp currently has a consensus price target of $73.33, indicating a potential downside of 5.30%. Given Southern Missouri Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Southern Missouri Bancorp is more favorable than First Bancorp of Indiana.

Dividends

Southern Missouri Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. First Bancorp of Indiana pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Southern Missouri Bancorp pays out 16.7% of its earnings in the form of a dividend. First Bancorp of Indiana pays out 152.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern Missouri Bancorp has increased its dividend for 13 consecutive years.

Risk & Volatility

Southern Missouri Bancorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, First Bancorp of Indiana has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Earnings and Valuation

This table compares Southern Missouri Bancorp 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
Southern Missouri Bancorp	$305.35 million	2.79	$58.58 million	$5.99	12.93
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	69.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Southern Missouri Bancorp	21.36%	12.05%	1.33%
First Bancorp of Indiana	N/A	N/A	N/A

Summary

Southern Missouri Bancorp beats First Bancorp of Indiana on 12 of the 15 factors compared between the two stocks.

About Southern Missouri Bancorp

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.

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.