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

Risk & Volatility

German American Bancorp has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, First Mid-Illinois Bancshares has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500.

Insider & Institutional Ownership

35.8% of German American Bancorp shares are owned by institutional investors. Comparatively, 20.1% of First Mid-Illinois Bancshares shares are owned by institutional investors. 8.5% of German American Bancorp shares are owned by insiders. Comparatively, 20.3% of First Mid-Illinois Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for German American Bancorp and First Mid-Illinois Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
German American Bancorp 0 3 0 0 2.00
First Mid-Illinois Bancshares 0 2 0 0 2.00

German American Bancorp presently has a consensus price target of $38.67, indicating a potential upside of 1.89%. First Mid-Illinois Bancshares has a consensus price target of $37.00, indicating a potential downside of 8.14%. Given German American Bancorp’s higher probable upside, equities analysts plainly believe German American Bancorp is more favorable than First Mid-Illinois Bancshares.

Profitability

This table compares German American Bancorp and First Mid-Illinois Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
German American Bancorp 28.12% 11.60% 1.34%
First Mid-Illinois Bancshares 22.04% 9.16% 0.94%

Earnings & Valuation

This table compares German American Bancorp and First Mid-Illinois Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
German American Bancorp $130.86 million 6.65 $36.61 million $1.60 23.77
First Mid-Illinois Bancshares $109.60 million 4.60 N/A N/A N/A

German American Bancorp has higher revenue and earnings than First Mid-Illinois Bancshares.

Dividends

German American Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. First Mid-Illinois Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 1.6%. German American Bancorp pays out 32.6% of its earnings in the form of a dividend.

Summary

German American Bancorp beats First Mid-Illinois Bancshares on 9 of the 12 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company, through its banking subsidiary German American Bancorp, operated 51 banking offices in 19 contiguous southern Indiana counties and one northern Kentucky county. Its segments are core banking, trust and investment advisory services, insurance, and other. The core banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in its local markets. The core banking segment also involves the sale of residential mortgage loans in the secondary market. The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers. The insurance segment offers a range of personal and corporate property and casualty insurance products, in its banking subsidiary’s local markets.

About First Mid-Illinois Bancshares

First Mid-Illinois Bancshares, Inc. is a financial holding company. The Company is engaged in the business of banking through its subsidiaries, First Mid-Illinois Bank & Trust, N.A. (First Mid Bank) and First Clover Leaf Bank, N.A. (First Clover Leaf Bank). The Company provides data processing services to affiliates through another subsidiary, Mid-Illinois Data Services, Inc. (MIDS). The Company offers insurance products and services to customers through its subsidiary, The Checkley Agency, Inc., doing business as First Mid Insurance Group (First Mid Insurance). The Company also owns three statutory business trusts, First Mid-Illinois Statutory Trust I (First Mid Trust I), and First Mid-Illinois Statutory Trust II (First Mid Trust II), and Clover Leaf Statutory Trust I (CLST Trust). As of December 31, 2016, the Company operated in three primary lines of business: community banking, wealth management, and insurance brokerage.

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