First Mid Bancshares (NASDAQ:FMBH) & First Internet Bancorp (NASDAQ:INBK) Financial Comparison

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

Risk and Volatility

First Internet Bancorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, First Mid Bancshares has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Internet Bancorp	$339.23 million	0.60	$25.28 million	$2.41	9.65
First Mid Bancshares	$453.67 million	1.87	$78.90 million	$3.36	10.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	6.01%	4.64%	0.31%
First Mid Bancshares	17.75%	9.90%	1.11%

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. First Mid Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.7%. First Internet Bancorp pays out 10.0% of its earnings in the form of a dividend. First Mid Bancshares pays out 28.6% 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. First Mid Bancshares has increased its dividend for 3 consecutive years. First Mid Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

65.5% of First Internet Bancorp shares are held by institutional investors. Comparatively, 47.6% of First Mid Bancshares shares are held by institutional investors. 8.0% of First Internet Bancorp shares are held by company insiders. Comparatively, 7.7% of First Mid Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Internet Bancorp and First Mid Bancshares, 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
First Mid Bancshares	0	2	4	0	2.67

First Internet Bancorp presently has a consensus price target of $31.75, suggesting a potential upside of 36.50%. First Mid Bancshares has a consensus price target of $43.83, suggesting a potential upside of 24.21%. Given First Internet Bancorp’s higher probable upside, analysts plainly believe First Internet Bancorp is more favorable than First Mid Bancshares.

Summary

First Mid Bancshares beats First Internet Bancorp on 13 of the 17 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 First Mid Bancshares

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company’s loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans, as well as construction and land development, 1-4 family residential properties, and multifamily residential properties loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; employee benefit services for businesses; and farm management and brokerage services. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.