Contrasting First Internet Bancorp (NASDAQ:INBK) and Mid Penn Bancorp (NASDAQ:MPB)

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

Volatility & Risk

First Internet Bancorp has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. First Internet Bancorp pays out -6.3% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 36.1% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Internet Bancorp and Mid Penn Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	3	1	0	2.00
Mid Penn Bancorp	0	1	1	0	2.50

First Internet Bancorp presently has a consensus price target of $24.33, suggesting a potential upside of 12.55%. Mid Penn Bancorp has a consensus price target of $37.00, suggesting a potential upside of 17.46%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Mid Penn Bancorp is more favorable than First Internet Bancorp.

Profitability

This table compares First Internet Bancorp and Mid Penn 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%
Mid Penn Bancorp	14.82%	8.25%	1.01%

Insider and Institutional Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 8.0% of First Internet Bancorp shares are owned by company insiders. Comparatively, 8.1% of Mid Penn Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares First Internet Bancorp and Mid Penn Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Internet Bancorp	$339.23 million	0.56	$25.28 million	($3.80)	-5.69
Mid Penn Bancorp	$309.08 million	2.35	$49.44 million	$2.44	12.91

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

Summary

Mid Penn Bancorp beats First Internet Bancorp on 11 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 Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.