Analyzing Banco Bilbao Viscaya Argentaria (NYSE:BBVA) and First Internet Bancorp (NASDAQ:INBK)

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

Profitability

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

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

Insider and Institutional Ownership

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Bilbao Viscaya Argentaria	0	7	1	0	2.12
First Internet Bancorp	1	2	2	1	2.50

First Internet Bancorp has a consensus price target of $29.38, indicating a potential upside of 6.35%. Given First Internet Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Internet Bancorp is more favorable than Banco Bilbao Viscaya Argentaria.

Dividends

Banco Bilbao Viscaya Argentaria pays an annual dividend of $1.13 per share and has a dividend yield of 4.2%. 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 out 51.4% of its earnings in the form of a dividend. First Internet Bancorp pays out -6.7% 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.

Earnings and Valuation

This table compares Banco Bilbao Viscaya Argentaria and First Internet Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Bilbao Viscaya Argentaria	$42.54 billion	3.54	$11.89 billion	$2.20	12.25
First Internet Bancorp	$322.87 million	0.75	-$35.17 million	($3.60)	-7.67

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.

Volatility and Risk

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

Summary

Banco Bilbao Viscaya Argentaria beats First Internet Bancorp on 9 of the 17 factors compared between the two stocks.

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.

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.