Northpointe Bancshares (NYSE:NPB) versus First Bancorp of Indiana (OTCMKTS:FBPI) Critical Analysis

First Bancorp of Indiana (OTCMKTS:FBPI) and Northpointe Bancshares (NYSE:NPB) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

First Bancorp of Indiana pays an annual dividend of $0.24 per share and has a dividend yield of 2.0%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. First Bancorp of Indiana pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northpointe Bancshares pays out 4.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares First Bancorp of Indiana and Northpointe Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	56.52
Northpointe Bancshares	$471.18 million	1.32	$55.16 million	$2.09	8.68

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

Profitability

This table compares First Bancorp of Indiana and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Bancorp of Indiana	N/A	N/A	N/A
Northpointe Bancshares	17.70%	13.79%	1.31%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Bancorp of Indiana and Northpointe Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Bancorp of Indiana	0	0	0	0	0.00
Northpointe Bancshares	1	1	2	0	2.25

Northpointe Bancshares has a consensus target price of $19.08, indicating a potential upside of 5.16%. Given Northpointe Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Northpointe Bancshares is more favorable than First Bancorp of Indiana.

Summary

Northpointe Bancshares beats First Bancorp of Indiana on 9 of the 11 factors compared between the two stocks.

About First Bancorp of Indiana

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank, provides various banking products and services to individuals and business customers in the United States. The company accepts various deposits such as certificates of deposit, checking, health savings, individual retirement, money market, and savings accounts; loans include retail loan advisors, consumer loans, such as auto, motorcycle, boat, and recreational vehicle loans; mortgage and home equity loans; and current rates and secured deposits. It also accepts various business deposit accounts including commercial, business, small business, and community first checking accounts; lending services comprising relationship bankers; commercial real estate, equipment, owner occupied and investment real estate financing, as well as working capital line of credit, business loans, and small business administration. In addition, the company provides treasury management, online banking, merchant services, remote capture, and debit and credit card services. First Bancorp of Indiana, Inc. was founded in 1904 and is headquartered in Evansville, Indiana.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.