Banco Bilbao Viscaya Argentaria (NYSE:BBVA) versus First Internet Bancorp (NASDAQ:INBK) Critical Contrast

First Internet Bancorp (NASDAQ:INBK) and Banco Bilbao Viscaya Argentaria (NYSE:BBVA) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Banco Bilbao Viscaya Argentaria pays an annual dividend of $1.14 per share and has a dividend yield of 4.2%. First Internet Bancorp pays out -6.7% of its earnings in the form of a dividend. Banco Bilbao Viscaya Argentaria pays out 51.8% 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.

Profitability

This table compares First Internet Bancorp and Banco Bilbao Viscaya Argentaria’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	-9.01%	-0.55%	-0.04%
Banco Bilbao Viscaya Argentaria	27.75%	18.05%	1.27%

Analyst Recommendations

This is a breakdown of current ratings for First Internet Bancorp and Banco Bilbao Viscaya Argentaria, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	2	2	1	2.50
Banco Bilbao Viscaya Argentaria	0	6	1	1	2.38

First Internet Bancorp currently has a consensus target price of $29.38, indicating a potential upside of 9.90%. Given First Internet Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe First Internet Bancorp is more favorable than Banco Bilbao Viscaya Argentaria.

Insider and Institutional Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. Comparatively, 3.0% of Banco Bilbao Viscaya Argentaria shares are owned by institutional investors. 6.2% of First Internet Bancorp shares are owned by insiders. Comparatively, 0.0% of Banco Bilbao Viscaya Argentaria shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

First Internet Bancorp has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Banco Bilbao Viscaya Argentaria has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Internet Bancorp and Banco Bilbao Viscaya Argentaria”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	$322.87 million	0.72	-$35.17 million	($3.60)	-7.42
Banco Bilbao Viscaya Argentaria	$41.77 billion	3.63	$11.89 billion	$2.20	12.34

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

Summary

Banco Bilbao Viscaya Argentaria beats First Internet Bancorp on 9 of the 16 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 Banco Bilbao Viscaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.