Critical Review: First Bancorp of Indiana (OTCMKTS:FBPI) & Landmark Bancorp (NASDAQ:LARK)

First Bancorp of Indiana (OTCMKTS:FBPI) and Landmark Bancorp (NASDAQ:LARK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Bancorp of Indiana	N/A	N/A	N/A
Landmark Bancorp	19.67%	12.22%	1.19%

Volatility and Risk

First Bancorp of Indiana has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Bancorp of Indiana and Landmark Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp of Indiana	0	0	0	0	0.00
Landmark Bancorp	0	0	1	0	3.00

Insider and Institutional Ownership

25.7% of Landmark Bancorp shares are held by institutional investors. 20.0% of First Bancorp of Indiana shares are held by insiders. Comparatively, 12.8% of Landmark Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

First Bancorp of Indiana pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. 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. Landmark Bancorp pays out 26.9% of its earnings in the form of a dividend. Landmark Bancorp has increased its dividend for 6 consecutive years. Landmark Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares First Bancorp of Indiana and Landmark Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	67.43
Landmark Bancorp	$95.97 million	1.97	$18.77 million	$3.12	9.94

Landmark Bancorp has higher revenue and earnings than First Bancorp of Indiana. Landmark 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.

Summary

Landmark Bancorp beats First Bancorp of Indiana on 12 of the 14 factors compared between the two stocks.

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.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.