First Bancorp of Indiana (OTCMKTS:FBPI) and Pathfinder Bancorp (NASDAQ:PBHC) Head to Head Survey

Pathfinder Bancorp (NASDAQ:PBHC) and First Bancorp of Indiana (OTCMKTS:FBPI) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Volatility & Risk

Pathfinder Bancorp has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, First Bancorp of Indiana has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Profitability

This table compares Pathfinder Bancorp and First Bancorp of Indiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	-4.96%	-3.20%	-0.27%
First Bancorp of Indiana	N/A	N/A	N/A

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. First Bancorp of Indiana pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Pathfinder Bancorp pays out -63.5% of its earnings in the form of a dividend. First Bancorp of Indiana pays out 152.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pathfinder Bancorp has raised its dividend for 1 consecutive years. Pathfinder Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for Pathfinder Bancorp and First Bancorp of Indiana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Bancorp	1	0	0	0	1.00
First Bancorp of Indiana	0	0	0	0	0.00

Valuation & Earnings

This table compares Pathfinder Bancorp and First Bancorp of Indiana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$79.15 million	0.99	-$1.93 million	($0.63)	-25.47
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	67.43

First Bancorp of Indiana has lower revenue, but higher earnings than Pathfinder Bancorp. Pathfinder Bancorp is trading at a lower price-to-earnings ratio than First Bancorp of Indiana, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. 15.7% of Pathfinder Bancorp shares are held by company insiders. Comparatively, 20.0% of First Bancorp of Indiana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Pathfinder Bancorp beats First Bancorp of Indiana on 7 of the 13 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About First Bancorp of Indiana

First Bancorp of Indiana, Inc. operates as the bank holding company for First Federal Savings Bank, provides various banking products and services to individuals and business customers in the United States. The company accepts various deposits such as certificates of deposit, checking, health savings, individual retirement, money market, and savings accounts; loans include retail loan advisors, consumer loans, such as auto, motorcycle, boat, and recreational vehicle loans; mortgage and home equity loans; and current rates and secured deposits. It also accepts various business deposit accounts including commercial, business, small business, and community first checking accounts; lending services comprising relationship bankers; commercial real estate, equipment, owner occupied and investment real estate financing, as well as working capital line of credit, business loans, and small business administration. In addition, the company provides treasury management, online banking, merchant services, remote capture, and debit and credit card services. First Bancorp of Indiana, Inc. was founded in 1904 and is headquartered in Evansville, Indiana.