Eagle Bancorp Montana (NASDAQ:EBMT – Get Free Report) and German American Bancorp (NASDAQ:GABC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Dividends
Eagle Bancorp Montana pays an annual dividend of $0.58 per share and has a dividend yield of 2.6%. German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.9%. Eagle Bancorp Montana pays out 30.9% of its earnings in the form of a dividend. German American Bancorp pays out 40.9% 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. Eagle Bancorp Montana has raised its dividend for 14 consecutive years and German American Bancorp has raised its dividend for 13 consecutive years.
Insider & Institutional Ownership
35.7% of Eagle Bancorp Montana shares are held by institutional investors. Comparatively, 46.9% of German American Bancorp shares are held by institutional investors. 6.1% of Eagle Bancorp Montana shares are held by company insiders. Comparatively, 6.2% of German American Bancorp shares are held by company 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 & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eagle Bancorp Montana | $127.08 million | 1.41 | $14.84 million | $1.88 | 12.02 |
| German American Bancorp | $487.40 million | 3.26 | $112.64 million | $3.03 | 13.99 |
German American Bancorp has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than German American Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Eagle Bancorp Montana and German American Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eagle Bancorp Montana | 0 | 1 | 1 | 1 | 3.00 |
| German American Bancorp | 0 | 2 | 1 | 0 | 2.33 |
Eagle Bancorp Montana currently has a consensus target price of $23.00, indicating a potential upside of 1.77%. German American Bancorp has a consensus target price of $46.50, indicating a potential upside of 9.68%. Given German American Bancorp’s higher possible upside, analysts clearly believe German American Bancorp is more favorable than Eagle Bancorp Montana.
Risk & Volatility
Eagle Bancorp Montana has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Profitability
This table compares Eagle Bancorp Montana and German American Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eagle Bancorp Montana | 11.67% | 8.17% | 0.70% |
| German American Bancorp | 23.11% | 12.02% | 1.55% |
Summary
German American Bancorp beats Eagle Bancorp Montana on 13 of the 17 factors compared between the two stocks.
About Eagle Bancorp Montana
Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.
About German American Bancorp
German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.
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