Financial Comparison: IF Bancorp (NASDAQ:IROQ) and First Internet Bancorp (NASDAQ:INBK)

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

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. IF Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. First Internet Bancorp pays out -6.3% of its earnings in the form of a dividend. IF Bancorp pays out 25.5% 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.

Valuation & Earnings

This table compares First Internet Bancorp and IF Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Internet Bancorp	$108.06 million	1.75	$25.28 million	($3.80)	-5.71
IF Bancorp	$26.77 million	3.42	$4.30 million	$1.57	17.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	-9.35%	-2.05%	-0.13%
IF Bancorp	10.49%	6.30%	0.58%

Analyst Recommendations

This is a breakdown of current recommendations for First Internet Bancorp and IF Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	3	1	0	2.00
IF Bancorp	0	1	0	0	2.00

First Internet Bancorp currently has a consensus price target of $24.33, suggesting a potential upside of 12.08%. Given First Internet Bancorp’s higher probable upside, research analysts plainly believe First Internet Bancorp is more favorable than IF Bancorp.

Institutional & Insider Ownership

65.5% of First Internet Bancorp shares are held by institutional investors. Comparatively, 44.1% of IF Bancorp shares are held by institutional investors. 8.0% of First Internet Bancorp shares are held by insiders. Comparatively, 12.6% of IF Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

First Internet Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, IF Bancorp has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Summary

IF Bancorp beats First Internet Bancorp on 8 of the 15 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 IF Bancorp

IF Bancorp, Inc. operates as the savings and loan holding company for Iroquois Federal Savings and Loan Association that provides a range of banking and financial services to individual and corporate clients. The company offers various deposit accounts, including savings accounts, certificates of deposit, money market accounts, commercial and personal checking accounts, individual retirement accounts, and health savings accounts. It provides loans comprising one- to four-family residential mortgage loans; multi-family mortgage loans; commercial real estate loans, such as farm loans; home equity lines of credit; commercial business loans; and consumer loans primarily comprising automobile loans, as well as construction loans and land development loans. In addition, the company sells property and casualty insurance, as well as offers annuities; mutual funds; individual and group retirement plans; life, disability, and health insurance; individual securities; managed accounts; and other financial services. IF Bancorp, Inc. invests in securities; and provides ATM, online banking and bill pay, mobile banking, ACH origination, remote deposit capture, and telephone banking services. The company was founded in 1883 and is headquartered in Watseka, Illinois.