Head-To-Head Review: Carter Bank and Trust (NASDAQ:CARE) vs. Horizon Bancorp (NASDAQ:HBNC)

Carter Bank and Trust (NASDAQ:CARE) and Horizon Bancorp (NASDAQ:HBNC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

34.4% of Carter Bank and Trust shares are owned by institutional investors. Comparatively, 49.2% of Horizon Bancorp shares are owned by institutional investors. 4.0% of Horizon Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Carter Bank and Trust and Horizon Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carter Bank and Trust 0 2 2 0 2.50
Horizon Bancorp 0 0 0 0 N/A

Carter Bank and Trust presently has a consensus target price of $18.67, indicating a potential upside of 10.45%. Given Carter Bank and Trust’s higher possible upside, analysts plainly believe Carter Bank and Trust is more favorable than Horizon Bancorp.

Earnings and Valuation

This table compares Carter Bank and Trust and Horizon Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carter Bank and Trust $169.01 million 2.63 $11.90 million N/A N/A
Horizon Bancorp $251.39 million 2.69 $66.54 million $1.64 9.16

Horizon Bancorp has higher revenue and earnings than Carter Bank and Trust.

Profitability

This table compares Carter Bank and Trust and Horizon Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carter Bank and Trust N/A N/A N/A
Horizon Bancorp 26.47% 11.12% 1.36%

Summary

Horizon Bancorp beats Carter Bank and Trust on 8 of the 10 factors compared between the two stocks.

About Carter Bank and Trust

Carter Bank & Trust provides a range of retail and commercial banking products and services in Virginia and North Carolina. It accepts checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposit. The company also offers loans, such as secured and unsecured commercial loans; secured and unsecured consumer loans for financing automobiles, home improvements, education, and personal investments; real estate construction and acquisition loans; and fixed and variable rate mortgage loans. In addition, it provides safe deposit boxes, direct deposit of payroll and social security checks, and automated drafts for various accounts. As of December 31, 2018, the company operated 105 branches. Carter Bank & Trust is headquartered in Martinsville, Virginia.

About Horizon Bancorp

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides commercial and retail banking services. The company offers demand and time deposits. Its loan portfolio comprises commercial, residential 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 63 full service offices and 3 loan and deposit production offices in Northern and Central regions of Indiana, as well as Southern, Central, and Great Lakes bay regions of Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

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