Head-To-Head Analysis: Peoples Bancorp (NASDAQ:PEBO) versus Landmark Bancorp (NASDAQ:LARK)

Peoples Bancorp (NASDAQ:PEBO) and Landmark Bancorp (NASDAQ:LARK) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Peoples Bancorp and Landmark Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Bancorp	$458.86 million	3.01	$106.78 million	$3.31	11.61
Landmark Bancorp	$95.97 million	1.96	$18.77 million	$3.29	9.36

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

Dividends

Peoples Bancorp pays an annual dividend of $1.68 per share and has a dividend yield of 4.4%. Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. Peoples Bancorp pays out 50.8% of its earnings in the form of a dividend. Landmark 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. Peoples Bancorp has increased its dividend for 10 consecutive years and Landmark Bancorp has increased its dividend for 6 consecutive years. Peoples Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Peoples Bancorp and Landmark Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Bancorp	19.17%	10.71%	1.35%
Landmark Bancorp	20.56%	12.49%	1.25%

Risk & Volatility

Peoples Bancorp has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Peoples Bancorp and Landmark Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Bancorp	0	2	3	0	2.60
Landmark Bancorp	0	1	1	0	2.50

Peoples Bancorp currently has a consensus price target of $42.00, indicating a potential upside of 9.29%. Given Peoples Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe Peoples Bancorp is more favorable than Landmark Bancorp.

Institutional and Insider Ownership

60.7% of Peoples Bancorp shares are owned by institutional investors. Comparatively, 25.7% of Landmark Bancorp shares are owned by institutional investors. 3.3% of Peoples Bancorp shares are owned by insiders. Comparatively, 9.8% of Landmark Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Peoples Bancorp beats Landmark Bancorp on 13 of the 17 factors compared between the two stocks.

About Peoples Bancorp

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and consumer banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, certificates of deposit, and governmental deposits; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts. It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier’s checks; and telephone, mobile, and online banking services. In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; interactive teller machines; insurance premium financing; check deposit and alert notification; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination, and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and leasing; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services. Peoples Bancorp Inc. was founded in 1902 and is headquartered in Marietta, Ohio.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.