First Internet Bancorp (NASDAQ:INBK) vs. NBT Bancorp (NASDAQ:NBTB) Head-To-Head Contrast

First Internet Bancorp (NASDAQ:INBK) and NBT Bancorp (NASDAQ:NBTB) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Internet Bancorp and NBT Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	3	1	0	2.00
NBT Bancorp	0	3	2	1	2.67

First Internet Bancorp presently has a consensus price target of $25.67, suggesting a potential upside of 7.77%. NBT Bancorp has a consensus price target of $49.50, suggesting a potential upside of 7.14%. Given First Internet Bancorp’s higher probable upside, equities research analysts clearly believe First Internet Bancorp is more favorable than NBT Bancorp.

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. NBT Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. First Internet Bancorp pays out -6.2% of its earnings in the form of a dividend. NBT Bancorp pays out 42.2% 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. NBT Bancorp has increased its dividend for 12 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. Comparatively, 58.5% of NBT Bancorp shares are owned by institutional investors. 6.2% of First Internet Bancorp shares are owned by insiders. Comparatively, 3.0% of NBT Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

First Internet Bancorp has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Profitability

This table compares First Internet Bancorp and NBT Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	-9.60%	-1.14%	-0.07%
NBT Bancorp	19.59%	11.06%	1.28%

Valuation & Earnings

This table compares First Internet Bancorp and NBT Bancorp”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	0.64	-$35.17 million	($3.85)	-6.19
NBT Bancorp	$906.48 million	2.65	$169.24 million	$3.51	13.16

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

Summary

NBT Bancorp beats First Internet Bancorp on 13 of the 18 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 NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.