Analyzing Northeast Indiana Bancorp (OTCMKTS:NIDB) & Greene County Bancorp (NASDAQ:GCBC)

Greene County Bancorp (NASDAQ:GCBC) and Northeast Indiana Bancorp (OTCMKTS:NIDB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Greene County Bancorp and Northeast Indiana Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greene County Bancorp	0	1	0	0	2.00
Northeast Indiana Bancorp	0	0	0	0	0.00

Earnings and Valuation

This table compares Greene County Bancorp and Northeast Indiana Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greene County Bancorp	$92.58 million	6.07	$31.14 million	$2.41	13.69
Northeast Indiana Bancorp	$33.64 million	1.66	$6.27 million	$2.88	8.26

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

Dividends

Greene County Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. Northeast Indiana Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 3.2%. Greene County Bancorp pays out 18.3% of its earnings in the form of a dividend. Northeast Indiana Bancorp pays out 26.4% 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. Greene County Bancorp has raised its dividend for 11 consecutive years.

Insider and Institutional Ownership

13.4% of Greene County Bancorp shares are held by institutional investors. 59.2% of Greene County Bancorp shares are held by company insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Greene County Bancorp has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Profitability

This table compares Greene County Bancorp and Northeast Indiana Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greene County Bancorp	28.14%	15.90%	1.31%
Northeast Indiana Bancorp	19.98%	N/A	N/A

Summary

Greene County Bancorp beats Northeast Indiana Bancorp on 13 of the 15 factors compared between the two stocks.

About Greene County Bancorp

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company's deposit products include savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio consists of residential, construction and land, and multifamily loans; commercial real estate mortgage loans; consumer loans, such as loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans, including passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. is a subsidiary of Greene County Bancorp, MHC.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.