Horizon Bancorp (IN) (NASDAQ:HBNC) and SR Bancorp (NASDAQ:SRBK) Head-To-Head Survey

Horizon Bancorp (IN) (NASDAQ:HBNC) and SR Bancorp (NASDAQ:SRBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Horizon Bancorp (IN) and SR Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horizon Bancorp (IN)	-51.01%	10.01%	1.01%
SR Bancorp	6.28%	1.42%	0.26%

Analyst Ratings

This is a summary of current ratings and target prices for Horizon Bancorp (IN) and SR Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Bancorp (IN)	1	2	2	0	2.20
SR Bancorp	0	2	0	0	2.00

Horizon Bancorp (IN) currently has a consensus price target of $19.67, indicating a potential upside of 12.32%. SR Bancorp has a consensus price target of $16.00, indicating a potential downside of 3.44%. Given Horizon Bancorp (IN)’s stronger consensus rating and higher probable upside, research analysts plainly believe Horizon Bancorp (IN) is more favorable than SR Bancorp.

Insider and Institutional Ownership

64.5% of Horizon Bancorp (IN) shares are held by institutional investors. Comparatively, 24.7% of SR Bancorp shares are held by institutional investors. 2.8% of Horizon Bancorp (IN) shares are held by insiders. Comparatively, 7.8% of SR Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Horizon Bancorp (IN) and SR Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Bancorp (IN)	$359.45 million	2.50	$35.43 million	($3.93)	-4.46
SR Bancorp	$48.54 million	2.91	$5.14 million	$0.37	44.78

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

Dividends

Horizon Bancorp (IN) pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. SR Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Horizon Bancorp (IN) pays out -16.3% of its earnings in the form of a dividend. SR Bancorp pays out 54.1% 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. Horizon Bancorp (IN) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Horizon Bancorp (IN) has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, SR Bancorp has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Summary

Horizon Bancorp (IN) beats SR Bancorp on 11 of the 16 factors compared between the two stocks.

About Horizon Bancorp (IN)

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits. It also provides commercial, residential real estate, mortgage, home equity, auto, personal, business, agricultural, and SBA loans, as well as credit cards. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; debit cards; treasury management; online and mobile banking; wealth, retirement, and estate and trust services; and sells various insurance products. It operates through full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.