1st Source (NASDAQ:SRCE) & Peoples Bancorp (NASDAQ:PEBO) Head to Head Contrast

Peoples Bancorp (NASDAQ:PEBO) and 1st Source (NASDAQ:SRCE) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Peoples Bancorp and 1st Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Bancorp	17.27%	9.51%	1.17%
1st Source	26.38%	12.44%	1.75%

Institutional & Insider Ownership

60.7% of Peoples Bancorp shares are held by institutional investors. Comparatively, 74.5% of 1st Source shares are held by institutional investors. 3.3% of Peoples Bancorp shares are held by insiders. Comparatively, 20.2% of 1st Source shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Peoples Bancorp pays an annual dividend of $1.64 per share and has a dividend yield of 5.0%. 1st Source pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. Peoples Bancorp pays out 54.8% of its earnings in the form of a dividend. 1st Source pays out 25.0% 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. Peoples Bancorp has increased its dividend for 10 consecutive years and 1st Source has increased its dividend for 38 consecutive years.

Valuation & Earnings

This table compares Peoples Bancorp and 1st Source”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Bancorp	$618.38 million	1.91	$106.78 million	$2.99	10.99
1st Source	$600.00 million	2.81	$158.28 million	$6.41	10.80

1st Source has lower revenue, but higher earnings than Peoples Bancorp. 1st Source is trading at a lower price-to-earnings ratio than Peoples Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Peoples Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Peoples Bancorp and 1st Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Bancorp	0	3	3	0	2.50
1st Source	0	3	2	0	2.40

Peoples Bancorp currently has a consensus target price of $33.63, indicating a potential upside of 2.30%. 1st Source has a consensus target price of $75.33, indicating a potential upside of 8.85%. Given 1st Source’s higher probable upside, analysts plainly believe 1st Source is more favorable than Peoples Bancorp.

Summary

1st Source beats Peoples Bancorp on 11 of the 17 factors compared between the two stocks.

About Peoples Bancorp

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and consumer banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, certificates of deposit, and governmental deposits; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts. It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier’s checks; and telephone, mobile, and online banking services. In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; interactive teller machines; insurance premium financing; check deposit and alert notification; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination, and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services. Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and leasing; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services. Peoples Bancorp Inc. was founded in 1902 and is headquartered in Marietta, Ohio.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.