Analyzing BEO Bancorp (OTCMKTS:BEOB) and First Internet Bancorp (NASDAQ:INBK)

First Internet Bancorp (NASDAQ:INBK) and BEO Bancorp (OTCMKTS:BEOB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

First Internet Bancorp has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, BEO Bancorp has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. 7.8% of First Internet Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares First Internet Bancorp and BEO Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Internet Bancorp	$265.57 million	1.38	$8.42 million	$2.54	16.61
BEO Bancorp	$51.01 million	1.84	$14.21 million	N/A	N/A

BEO Bancorp has lower revenue, but higher earnings than First Internet Bancorp.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Internet Bancorp and BEO Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	0	2	2	0	2.50
BEO Bancorp	0	0	0	0	0.00

First Internet Bancorp currently has a consensus target price of $42.88, indicating a potential upside of 1.65%. Given First Internet Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe First Internet Bancorp is more favorable than BEO Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	6.92%	6.06%	0.42%
BEO Bancorp	N/A	N/A	N/A

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. BEO Bancorp pays an annual dividend of $1.15 per share and has a dividend yield of 1.5%. First Internet Bancorp pays out 9.4% of its earnings in the form of a dividend.

Summary

First Internet Bancorp beats BEO Bancorp on 10 of the 14 factors compared between the two stocks.

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.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.