First interstate banking system (NASDAQ: FIBK – Get a rating) and First Internet Bancorp (NASDAQ: INBK – Get a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on valuation strength, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and risk
First Interstate BancSystem has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. In comparison, First Internet Bancorp has a beta of 0.73, indicating that its stock price is its stock is 27% less volatile than the S&P 500.
Institutional and Insider Ownership
69.4% of First Interstate BancSystem shares are held by institutional investors. By comparison, 70.5% of First Internet Bancorp’s shares are held by institutional investors. 6.4% of the shares of First Interstate BancSystem are held by insiders of the company. By comparison, 7.2% of First Internet Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for First Interstate BancSystem and First Internet Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|First interstate banking system||0||0||3||0||3.00|
|First internet bank||0||0||3||0||3.00|
First Interstate BancSystem currently has a consensus price target of $44.00, indicating a potential upside of 19.70%. First Internet Bancorp has a consensus price target of $58.67, indicating a potential upside of 56.99%. Given First Internet Bancorp’s likely higher upside, analysts clearly believe that First Internet Bancorp is more favorable than First Interstate BancSystem.
This table compares the net margins, return on equity and return on assets of First Interstate BancSystem and First Internet Bancorp.
|Net margins||Return on equity||return on assets|
|First interstate banking system||14.78%||7.09%||0.73%|
|First internet bank||29.10%||13.17%||1.16%|
First Interstate BancSystem pays an annual dividend of $1.64 per share and has a dividend yield of 4.5%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. First Interstate BancSystem pays 85.4% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. First Internet Bancorp pays 4.9% of its profits as a dividend. First Interstate BancSystem has increased its dividend for 9 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of First Interstate BancSystem and First Internet Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|First interstate banking system||$656.00 million||6.14||$192.10 million||$1.92||19.15|
|First internet bank||$166.73 million||2.16||$48.11 million||$4.91||7.61|
First Interstate BancSystem has higher revenue and earnings than First Internet Bancorp. First Internet Bancorp trades at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the more affordable of the two stocks.
First Internet Bancorp beats First Interstate BancSystem on 8 out of 15 factors compared between the two stocks.
About First Interstate BancSystem (Get a rating)
First Interstate BancSystem, Inc. operates as a bank holding company for First Interstate Bank which provides a range of banking products and services in the United States. It offers various traditional deposit products, including checks, savings deposits and term deposits; and repurchase agreements primarily for commercial and municipal depositors. The Company also offers real estate loans including commercial real estate, construction, residential, agricultural and other real estate loans; consumer loans including direct personal loans, credit card loans and lines of credit and indirect loans; variable and fixed rate commercial loans for small and medium sized manufacturing, wholesale, retail and service businesses for working capital needs and business expansion; and agricultural loans. Additionally, it provides a range of trust, employee benefits, investment management, insurance, agency and custodial services to individuals, businesses and non-profit organizations. In addition, the Company provides marketing, credit review, loan servicing, credit card issuance and servicing, mortgage sales and servicing, indirect purchase and processing of consumer loans, loan collection and other operational services, as well as online and mobile banking. It serves individuals, businesses, municipalities, and other entities in a variety of industries, including agriculture, construction, education, energy, government services, healthcare, hospitality, housing, l mining, professional services, real estate development, retail, technology, tourism and wholesale. Trade. As of December 31, 2021, it operated 147 banking offices, including individual drive-through facilities in communities in Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is based in Billings, Montana.
About First Internet Bancorp (Get a rating)
First Internet Bancorp operates as a bank holding company for First Internet Bank of Indiana which provides commercial and retail banking products and services to personal and business customers in the United States. The company accepts interest-bearing and unpaid demand deposits, savings accounts, money market accounts and traded deposit accounts, as well as certificates of deposit. It also offers commercial and industrial real estate, homeownership and investors, construction, residential mortgages, home equity and home improvement, small installments, term loans and other consumer loans, as well as single-tenant lease financing and government and healthcare financing; franchise financing; and small business loans. In addition, the company is involved in the purchase, management, service and custody of municipal securities; and the provision of municipal credit and leasing products to government entities. In addition, it offers credit card and cash management services to businesses. The company provides its services through its website firstib.com. First Internet Bancorp was founded in 1999 and is headquartered in Fishers, Indiana.
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