Analyzing First Internet Bancorp (NASDAQ:INBK) & Sumitomo Mitsui Trust (OTCMKTS:SUTNY)

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

Analyst Recommendations

This is a breakdown of current ratings for First Internet Bancorp and Sumitomo Mitsui Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	2	2	1	2.50
Sumitomo Mitsui Trust	0	1	0	0	2.00

First Internet Bancorp currently has a consensus target price of $29.38, indicating a potential upside of 10.47%. Given First Internet Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe First Internet Bancorp is more favorable than Sumitomo Mitsui Trust.

Institutional & Insider Ownership

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

Earnings & Valuation

This table compares First Internet Bancorp and Sumitomo Mitsui Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Internet Bancorp	$322.87 million	0.72	-$35.17 million	($3.60)	-7.39
Sumitomo Mitsui Trust	$19.82 billion	1.46	$1.99 billion	$0.43	12.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Internet Bancorp	-9.01%	-0.55%	-0.04%
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. First Internet Bancorp pays out -6.7% of its earnings in the form of a dividend. Sumitomo Mitsui Trust pays out 23.3% 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.

Summary

Sumitomo Mitsui Trust beats First Internet Bancorp on 8 of the 15 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 Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Holdings, Inc. operates as a trust bank in Japan and internationally. It offers supervising services for management strategies, and financial and human resource management; and general affairs, business process, corporate administration, operational process, risk, and compliance management services; and internal auditing services. The company also provides real estate brokerage, investment management, and investment advisory services for individual and corporate clients; high-level professional consulting services; loan guarantees and payment collection agency services; issuing credit cards; internet banking; securities administration and credit card services; and advanced financial instruments, such as leasing and credit services, and credit card financing services, as well as mortgage loans and managing private equity funds and related advisory services. In addition, it offers back-office services, such as business management and system administration for stock transfer agencies; clerical works, including managing shareholders registry and special accounts; custody and fund administration services; stock transfer agency services; asset management services; and retail total solution, marketing, and fiduciary services, as well as system development and maintenance. Further, the company provides facilities management, clerical work outsourcing, and leasing of buildings; consulting services related to digital transformation, data-analytics, and a range of research and studies; and evaluation of mutual funds, discretionary investment funds, and insurance products, as well as engages in trustee and temporary staffing businesses. The company was formerly known as Chuo Mitsui Trust Holdings, Inc. and changed its name to Sumitomo Mitsui Trust Holdings, Inc. in 2011. Sumitomo Mitsui Trust Holdings, Inc. was founded in 1924 and is headquartered in Tokyo, Japan.