First Internet Bancorp (NASDAQ:INBK) & LCNB (NASDAQ:LCNB) Head-To-Head Analysis

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

Institutional and Insider Ownership

34.7% of LCNB shares are held by institutional investors. Comparatively, 65.5% of First Internet Bancorp shares are held by institutional investors. 5.7% of LCNB shares are held by company insiders. Comparatively, 6.2% of First Internet Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LCNB and First Internet Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	0	1	0	3.00
First Internet Bancorp	1	3	1	1	2.33

First Internet Bancorp has a consensus price target of $28.00, suggesting a potential downside of 2.06%. Given First Internet Bancorp’s higher probable upside, analysts clearly believe First Internet Bancorp is more favorable than LCNB.

Risk and Volatility

LCNB has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$124.52 million	2.08	$23.12 million	$1.61	11.30
First Internet Bancorp	$322.87 million	0.77	-$35.17 million	($3.85)	-7.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LCNB	18.50%	8.48%	1.02%
First Internet Bancorp	-9.60%	-1.14%	-0.07%

Dividends

LCNB pays an annual dividend of $0.88 per share and has a dividend yield of 4.8%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. LCNB pays out 54.7% of its earnings in the form of a dividend. First Internet Bancorp pays out -6.2% 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. LCNB has raised its dividend for 7 consecutive years. LCNB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

LCNB beats First Internet Bancorp on 10 of the 17 factors compared between the two stocks.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

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.