First Internet Bancorp (NASDAQ:INBK – Get Free Report) and Bankinter (OTCMKTS:BKNIY – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Profitability
This table compares First Internet Bancorp and Bankinter’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Internet Bancorp | -9.01% | -0.55% | -0.04% |
| Bankinter | 24.51% | 18.89% | 0.92% |
Dividends
First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Bankinter pays an annual dividend of $0.44 per share and has a dividend yield of 2.8%. First Internet Bancorp pays out 14.1% of its earnings in the form of a dividend. Bankinter pays out 29.5% 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.
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 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
First Internet Bancorp has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Bankinter has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.
Earnings and Valuation
This table compares First Internet Bancorp and Bankinter”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Internet Bancorp | $161.41 million | 1.44 | -$35.17 million | $1.70 | 15.70 |
| Bankinter | $5.27 billion | 2.67 | $1.23 billion | $1.49 | 10.52 |
Bankinter has higher revenue and earnings than First Internet Bancorp. Bankinter is trading at a lower price-to-earnings ratio than First Internet Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for First Internet Bancorp and Bankinter, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Internet Bancorp | 1 | 3 | 2 | 0 | 2.17 |
| Bankinter | 1 | 2 | 2 | 1 | 2.50 |
First Internet Bancorp currently has a consensus target price of $30.62, suggesting a potential upside of 14.76%. Given First Internet Bancorp’s higher possible upside, research analysts plainly believe First Internet Bancorp is more favorable than Bankinter.
Summary
Bankinter 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 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.
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