Head to Head Comparison: Chemung Financial (NASDAQ:CHMG) and German American Bancorp (NASDAQ:GABC)

Chemung Financial (NASDAQ:CHMG) and German American Bancorp (NASDAQ:GABC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Chemung Financial and German American Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemung Financial	14.56%	10.60%	0.78%
German American Bancorp	23.75%	11.94%	1.33%

Institutional & Insider Ownership

47.5% of Chemung Financial shares are held by institutional investors. Comparatively, 46.9% of German American Bancorp shares are held by institutional investors. 12.0% of Chemung Financial shares are held by insiders. Comparatively, 4.6% of German American Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Chemung Financial has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Dividends

Chemung Financial pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. German American Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Chemung Financial pays out 27.4% of its earnings in the form of a dividend. German American Bancorp pays out 39.0% 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. German American Bancorp has raised its dividend for 12 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Chemung Financial and German American Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemung Financial	$137.62 million	1.63	$25.00 million	$4.52	10.42
German American Bancorp	$316.92 million	3.72	$85.89 million	$2.77	14.35

German American Bancorp has higher revenue and earnings than Chemung Financial. Chemung Financial is trading at a lower price-to-earnings ratio than German American Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Chemung Financial and German American Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemung Financial	0	2	0	0	2.00
German American Bancorp	0	2	3	0	2.60

Chemung Financial presently has a consensus target price of $58.50, indicating a potential upside of 24.20%. German American Bancorp has a consensus target price of $45.40, indicating a potential upside of 14.21%. Given Chemung Financial’s higher probable upside, analysts clearly believe Chemung Financial is more favorable than German American Bancorp.

Summary

German American Bancorp beats Chemung Financial on 12 of the 17 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.