Horizon Bancorp (NASDAQ: EBMT) and Eagle Bancorp Montana (NASDAQ:EBMT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Horizon Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Eagle Bancorp Montana pays an annual dividend of $0.37 per share and has a dividend yield of 2.0%. Horizon Bancorp pays out 39.2% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 29.1% 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. Horizon Bancorp has raised its dividend for 4 consecutive years and Eagle Bancorp Montana has raised its dividend for 2 consecutive years. Eagle Bancorp Montana is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Horizon Bancorp has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Horizon Bancorp and Eagle Bancorp Montana, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Bancorp Montana||0||0||1||0||3.00|
Horizon Bancorp currently has a consensus price target of $22.33, indicating a potential upside of 9.75%. Given Horizon Bancorp’s higher possible upside, research analysts plainly believe Horizon Bancorp is more favorable than Eagle Bancorp Montana.
Valuation and Earnings
This table compares Horizon Bancorp and Eagle Bancorp Montana’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horizon Bancorp||$161.62 million||4.83||$33.11 million||$1.02||19.95|
|Eagle Bancorp Montana||$42.19 million||2.43||$4.10 million||$1.27||14.76|
Horizon Bancorp has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than Horizon Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.8% of Horizon Bancorp shares are owned by institutional investors. Comparatively, 42.2% of Eagle Bancorp Montana shares are owned by institutional investors. 4.6% of Horizon Bancorp shares are owned by insiders. Comparatively, 6.9% of Eagle Bancorp Montana shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Horizon Bancorp and Eagle Bancorp Montana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Bancorp Montana||9.32%||7.06%||0.76%|
Horizon Bancorp beats Eagle Bancorp Montana on 12 of the 17 factors compared between the two stocks.
Horizon Bancorp Company Profile
Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides commercial and retail banking services. The company offers non-interest bearing and interest-bearing demand deposits, savings accounts, money market deposits, and time deposits. Its loan portfolio comprises commercial, financial, agricultural, and commercial tax-exempt loans; and real estate, mortgage warehouse, and consumer loans. The company also provides corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 62 full service offices in Northern and Central Indiana, as well as Southern, Central, and Great Lakes bay regions of Michigan. The company was founded in 1873 and is headquartered in Michigan City, Indiana.
Eagle Bancorp Montana Company Profile
Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services in Montana. The company offers one-to-four family residential mortgage loans; commercial real estate loans; real estate construction loans; home equity loans; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; and consumer loans comprising loans that are secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats. It also accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. In addition, the company provides wealth management and mortgage loan services. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.
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