John Marshall Bancorp (NASDAQ:JMSB – Get Free Report) and German American Bancorp (NASDAQ:GABC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Dividends
John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. German American Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. John Marshall Bancorp pays out 21.3% of its earnings in the form of a dividend. German American Bancorp pays out 32.0% 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. German American Bancorp has increased its dividend for 13 consecutive years. German American Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares John Marshall Bancorp and German American Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| John Marshall Bancorp | 21.84% | 9.97% | 1.14% |
| German American Bancorp | 28.78% | 12.33% | 1.74% |
Valuation & Earnings
This table compares John Marshall Bancorp and German American Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| John Marshall Bancorp | $69.98 million | 4.67 | $21.23 million | $1.88 | 12.32 |
| German American Bancorp | $394.24 million | 4.71 | $112.64 million | $3.88 | 12.73 |
German American Bancorp has higher revenue and earnings than John Marshall Bancorp. John Marshall Bancorp is trading at a lower price-to-earnings ratio than German American Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
39.1% of John Marshall Bancorp shares are owned by institutional investors. Comparatively, 46.9% of German American Bancorp shares are owned by institutional investors. 12.6% of John Marshall Bancorp shares are owned by company insiders. Comparatively, 3.2% of German American Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
John Marshall Bancorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, German American Bancorp has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for John Marshall Bancorp and German American Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| John Marshall Bancorp | 1 | 0 | 2 | 1 | 2.75 |
| German American Bancorp | 0 | 2 | 2 | 1 | 2.80 |
John Marshall Bancorp currently has a consensus price target of $25.00, suggesting a potential upside of 7.94%. German American Bancorp has a consensus price target of $53.33, suggesting a potential upside of 7.94%. Given John Marshall Bancorp’s higher probable upside, analysts clearly believe John Marshall Bancorp is more favorable than German American Bancorp.
Summary
German American Bancorp beats John Marshall Bancorp on 13 of the 16 factors compared between the two stocks.
About John Marshall Bancorp
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies
About German American Bancorp
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.
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