Critical Survey: Southern Missouri Bancorp (NASDAQ:SMBC) versus First Bancorp of Indiana (OTCMKTS:FBPI)

First Bancorp of Indiana (OTCMKTS:FBPI) and Southern Missouri Bancorp (NASDAQ:SMBC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Dividends

First Bancorp of Indiana pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Southern Missouri Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. First Bancorp of Indiana pays out 152.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern Missouri Bancorp pays out 16.7% of its earnings in the form of a dividend. Southern Missouri Bancorp has increased its dividend for 13 consecutive years.

Valuation & Earnings

This table compares First Bancorp of Indiana and Southern Missouri Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	67.43
Southern Missouri Bancorp	$316.78 million	2.70	$58.58 million	$5.99	12.97

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

Volatility & Risk

First Bancorp of Indiana has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Southern Missouri Bancorp has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares First Bancorp of Indiana and Southern Missouri Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp of Indiana	N/A	N/A	N/A
Southern Missouri Bancorp	22.63%	12.72%	1.42%

Analyst Recommendations

This is a summary of recent recommendations and price targets for First Bancorp of Indiana and Southern Missouri Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp of Indiana	0	0	0	0	0.00
Southern Missouri Bancorp	0	2	2	0	2.50

Southern Missouri Bancorp has a consensus price target of $73.33, indicating a potential downside of 5.64%. Given Southern Missouri Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Southern Missouri Bancorp is more favorable than First Bancorp of Indiana.

Institutional and Insider Ownership

49.5% of Southern Missouri Bancorp shares are held by institutional investors. 20.0% of First Bancorp of Indiana shares are held by insiders. Comparatively, 15.8% of Southern Missouri Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Southern Missouri Bancorp beats First Bancorp of Indiana on 12 of the 15 factors compared between the two stocks.

About First Bancorp of Indiana

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank, provides various banking products and services to individuals and business customers in the United States. The company accepts various deposits such as certificates of deposit, checking, health savings, individual retirement, money market, and savings accounts; loans include retail loan advisors, consumer loans, such as auto, motorcycle, boat, and recreational vehicle loans; mortgage and home equity loans; and current rates and secured deposits. It also accepts various business deposit accounts including commercial, business, small business, and community first checking accounts; lending services comprising relationship bankers; commercial real estate, equipment, owner occupied and investment real estate financing, as well as working capital line of credit, business loans, and small business administration. In addition, the company provides treasury management, online banking, merchant services, remote capture, and debit and credit card services. First Bancorp of Indiana, Inc. was founded in 1904 and is headquartered in Evansville, Indiana.

About Southern Missouri Bancorp

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.