Horizon Bancorp (HBNC) & First West Virginia Bancorp (FWVB) Critical Review

Horizon Bancorp (NASDAQ:HBNC) and First West Virginia Bancorp (OTCMKTS:FWVB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

53.2% of Horizon Bancorp shares are owned by institutional investors. Comparatively, 6.2% of First West Virginia Bancorp shares are owned by institutional investors. 4.6% of Horizon Bancorp shares are owned by company insiders. Comparatively, 19.2% of First West Virginia Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Horizon Bancorp and First West Virginia Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Bancorp 0 0 3 0 3.00
First West Virginia Bancorp 0 0 0 0 N/A

Horizon Bancorp currently has a consensus target price of $21.11, suggesting a potential upside of 29.04%.

Valuation and Earnings

This table compares Horizon Bancorp and First West Virginia Bancorp’s 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 3.88 $33.11 million $1.02 16.04
First West Virginia Bancorp N/A N/A N/A N/A N/A

Horizon Bancorp has higher revenue and earnings than First West Virginia Bancorp.

Dividends

Horizon Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. First West Virginia Bancorp pays an annual dividend of $0.80 per share. Horizon Bancorp pays out 39.2% of its earnings in the form of a dividend. Horizon Bancorp has raised its dividend for 5 consecutive years. Horizon Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Horizon Bancorp and First West Virginia Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horizon Bancorp 24.49% 10.28% 1.19%
First West Virginia Bancorp N/A N/A N/A

Summary

Horizon Bancorp beats First West Virginia Bancorp on 8 of the 10 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.

First West Virginia Bancorp Company Profile

First West Virginia Bancorp, Inc. operates as the holding company for Progressive Bank, N.A. that provides various banking services to individuals and businesses in the United States. The company offers checking, savings, Christmas club, and individual retirement accounts, as well as certificates of deposit; and commercial and residential real estate loans, consumer loans, and business loans. It also provides online banking, bill payment, mobile banking, remote deposit, electronic document delivery, safe deposit box, overdraft protection, wire transfer, and ACH origination services, as well as ATM and debit, and credit cards. The company offers its services through nine full service branches located in Wheeling, Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia; and Bellaire, Ohio. First West Virginia Bancorp, Inc. was founded in 1973 and is based in Wheeling, West Virginia.

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