Reviewing Landmark Bancorp (NASDAQ:LARK) & First Bancorp of Indiana (OTCMKTS:FBPI)

Landmark Bancorp (NASDAQ:LARK) 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 risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. First Bancorp of Indiana pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Landmark Bancorp pays out 26.9% 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. Landmark Bancorp has raised its dividend for 6 consecutive years. Landmark Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Landmark Bancorp and First Bancorp of Indiana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landmark Bancorp	0	0	1	0	3.00
First Bancorp of Indiana	0	0	0	0	0.00

Institutional & Insider Ownership

25.7% of Landmark Bancorp shares are owned by institutional investors. 12.8% of Landmark Bancorp shares are owned by company insiders. Comparatively, 20.0% of First Bancorp of Indiana shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Landmark Bancorp has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, First Bancorp of Indiana has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Landmark Bancorp	19.67%	12.22%	1.19%
First Bancorp of Indiana	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Landmark Bancorp	$95.97 million	1.98	$18.77 million	$3.12	9.98
First Bancorp of Indiana	N/A	N/A	N/A	$0.21	69.42

Landmark Bancorp has higher revenue and earnings than First Bancorp of Indiana. Landmark 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.

Summary

Landmark Bancorp beats First Bancorp of Indiana on 12 of the 14 factors compared between the two stocks.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.

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.