Reviewing Bankinter (OTCMKTS:BKNIY) & First Internet Bancorp (NASDAQ:INBK)

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

Valuation and Earnings

This table compares Bankinter and First Internet Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	2.68	$1.23 billion	$1.49	10.55
First Internet Bancorp	$322.87 million	0.72	-$35.17 million	($3.60)	-7.39

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

Risk & Volatility

Bankinter has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.51%	18.89%	0.92%
First Internet Bancorp	-9.01%	-0.55%	-0.04%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Bankinter and First Internet Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	2	2	1	2.50
First Internet Bancorp	1	2	2	1	2.50

First Internet Bancorp has a consensus target price of $29.38, indicating a potential upside of 10.47%. Given First Internet Bancorp’s higher possible upside, analysts clearly believe First Internet Bancorp is more favorable than Bankinter.

Dividends

Bankinter pays an annual dividend of $0.45 per share and has a dividend yield of 2.9%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Bankinter pays out 30.2% of its earnings in the form of a dividend. First Internet Bancorp pays out -6.7% 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

Bankinter beats First Internet Bancorp on 8 of the 13 factors compared between the two stocks.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

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.