First Internet Bancorp (NASDAQ:INBK) & Standard Chartered (OTCMKTS:SCBFF) Critical Survey

Standard Chartered (OTCMKTS:SCBFF) and First Internet Bancorp (NASDAQ:INBK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation and Earnings

This table compares Standard Chartered and First Internet Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$39.53 billion	1.71	$5.08 billion	$2.34	12.68
First Internet Bancorp	$322.87 million	0.69	-$35.17 million	$1.70	14.92

Standard Chartered has higher revenue and earnings than First Internet Bancorp. Standard Chartered 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.

Insider and Institutional Ownership

65.5% of First Internet Bancorp shares are owned by institutional investors. 6.2% of First Internet Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Standard Chartered has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Standard Chartered and First Internet Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	14.76%	11.35%	0.66%
First Internet Bancorp	4.27%	4.34%	0.27%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Standard Chartered and First Internet Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	4	5	0	2.56
First Internet Bancorp	0	4	2	0	2.33

First Internet Bancorp has a consensus price target of $30.62, indicating a potential upside of 20.76%. Given First Internet Bancorp’s higher possible upside, analysts clearly believe First Internet Bancorp is more favorable than Standard Chartered.

Dividends

Standard Chartered pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Standard Chartered pays out 17.1% of its earnings in the form of a dividend. First Internet Bancorp pays out 14.1% 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.

Summary

Standard Chartered beats First Internet Bancorp on 10 of the 16 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC is an international banking group headquartered in London. It provides services to individuals, businesses, corporations and financial institutions, including personal and business banking, wealth management, corporate and investment banking, trade finance, lending, deposits and transaction services. The group has a particular focus on markets across Asia, Africa and the Middle East, with operations and clients in other regions as well. Its history dates to 1969, when the Chartered Bank of India, Australia and China and the Standard Bank of British South Africa—both founded in the 19th century—merged to form Standard Chartered.

About First Internet Bancorp

First Internet Bancorp is the bank holding company for First Internet Bank of Indiana, a digital bank serving consumers and businesses. Founded in 1999, First Internet Bank was established as an online-only bank and operates without a traditional branch network. The bank offers personal and business deposit accounts, certificates of deposit, and lending services. Its commercial banking activities include loans for commercial real estate and businesses, as well as specialized financing, including Small Business Administration lending and public finance.