Analyzing German American Bancorp (GABC) & Its Rivals

German American Bancorp (NASDAQ:GABC) is one of 920 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare German American Bancorp to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Profitability

This table compares German American Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	28.78%	12.33%	1.74%
German American Bancorp Competitors	15.72%	9.53%	0.93%

Analyst Recommendations

This is a breakdown of current recommendations for German American Bancorp and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	2	1	2.80
German American Bancorp Competitors	7462	30177	27736	1456	2.35

German American Bancorp presently has a consensus price target of $53.33, suggesting a potential upside of 6.18%. As a group, “Banks” companies have a potential upside of 15.83%. Given German American Bancorp’s competitors higher possible upside, analysts plainly believe German American Bancorp has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

46.9% of German American Bancorp shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 3.2% of German American Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

German American Bancorp has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, German American Bancorp’s competitors have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Dividends

German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. German American Bancorp pays out 32.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. German American Bancorp has raised its dividend for 13 consecutive years. German American Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares German American Bancorp and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
German American Bancorp	$487.40 million	$112.64 million	12.95
German American Bancorp Competitors	$62.90 billion	$2.41 billion	16.82

German American Bancorp’s competitors have higher revenue and earnings than German American Bancorp. German American Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

German American Bancorp competitors beat German American Bancorp on 9 of the 15 factors compared.

German American Bancorp Company Profile

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.