Analyzing Pioneer Bankshares (OTCMKTS:PNBI) & First Internet Bancorp (NASDAQ:INBK)

First Internet Bancorp (NASDAQ:INBK) and Pioneer Bankshares (OTCMKTS:PNBI) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares First Internet Bancorp and Pioneer Bankshares’ 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%
Pioneer Bankshares	18.99%	N/A	N/A

Earnings & Valuation

This table compares First Internet Bancorp and Pioneer Bankshares”s 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	0.69	-$35.17 million	($3.85)	-6.67
Pioneer Bankshares	$20.97 million	2.05	$3.98 million	$3.98	10.68

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

Dividends

First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Pioneer Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.6%. First Internet Bancorp pays out -6.2% of its earnings in the form of a dividend. Pioneer Bankshares pays out 28.1% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First Internet Bancorp and Pioneer Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Internet Bancorp	1	3	1	0	2.00
Pioneer Bankshares	0	0	0	0	0.00

First Internet Bancorp currently has a consensus price target of $25.67, suggesting a potential downside of 0.09%. Given First Internet Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe First Internet Bancorp is more favorable than Pioneer Bankshares.

Risk & Volatility

First Internet Bancorp has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Pioneer Bankshares has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. 6.2% of First Internet Bancorp shares are owned by company insiders. Comparatively, 13.7% of Pioneer Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Pioneer Bankshares beats First Internet Bancorp on 9 of the 16 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 Pioneer Bankshares

Pioneer Bankshares, Inc. operates as the bank holding company for Pioneer Bank, Inc. that provides various banking and related financial services to individual consumers, small to medium size businesses, and professional community in the United States. The company offers various deposit products, which include business and personal checking accounts, savings accounts, and certificates of deposit. Its personal loans comprise personal installment and single-pay, and auto loans; and business loans consists of operating capital, equipment loans, investment properties, lines of credit, business expansion, and property acquisition or construction, as well as home mortgage and home equity loans. In addition, the company provides credit and debit cards, safe deposit boxes, online and mobile banking tools, merchant services, and cash management services. Further, it offers investment products, such as individual retirement accounts, 529 college savings plans, small business investment strategies, fixed, and variable annuities. Additionally, the company provides personalized investment advisory services, as well as securities and insurance products and services. Pioneer Bankshares, Inc. was founded in 1909 and is headquartered in Stanley, Virginia.