Analyzing Cambridge Bancorp (NASDAQ:CATC) and First Internet Bancorp (NASDAQ:INBK)

Cambridge Bancorp (NASDAQ:CATCGet Free Report) and First Internet Bancorp (NASDAQ:INBKGet Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Volatility and Risk

Cambridge Bancorp has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cambridge Bancorp 13.82% 8.86% 0.84%
First Internet Bancorp 3.81% 4.60% 0.33%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cambridge Bancorp and First Internet Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambridge Bancorp 0 3 1 0 2.25
First Internet Bancorp 0 2 1 0 2.33

Cambridge Bancorp presently has a consensus price target of $80.08, suggesting a potential upside of 16.74%. First Internet Bancorp has a consensus price target of $29.00, suggesting a potential downside of 12.07%. Given Cambridge Bancorp’s higher possible upside, research analysts clearly believe Cambridge Bancorp is more favorable than First Internet Bancorp.

Valuation & Earnings

This table compares Cambridge Bancorp and First Internet Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cambridge Bancorp $203.00 million 2.65 $52.91 million $4.76 14.41
First Internet Bancorp $265.57 million 1.07 $8.42 million $1.17 28.19

Cambridge Bancorp has higher earnings, but lower revenue than First Internet Bancorp. Cambridge Bancorp 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

56.7% of Cambridge Bancorp shares are owned by institutional investors. Comparatively, 62.4% of First Internet Bancorp shares are owned by institutional investors. 4.5% of Cambridge Bancorp shares are owned by company insiders. Comparatively, 7.1% of First Internet Bancorp 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.

Dividends

Cambridge Bancorp pays an annual dividend of $2.68 per share and has a dividend yield of 3.9%. First Internet Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Cambridge Bancorp pays out 56.3% of its earnings in the form of a dividend. First Internet Bancorp pays out 20.5% 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. Cambridge Bancorp has raised its dividend for 25 consecutive years. Cambridge Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cambridge Bancorp beats First Internet Bancorp on 9 of the 16 factors compared between the two stocks.

About Cambridge Bancorp

(Get Free Report)

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that engages in the provision of commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking, savings, money market, trust, and individual retirement accounts, as well as time and demand deposits, and certificates of deposit. Its loan products include residential and commercial real estate mortgage loans; home equity loans; commercial and industrial loans; consumer loans, such as secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates through a network of banking and wealth management offices located in Massachusetts and New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.

About First Internet Bancorp

(Get Free Report)

First Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides commercial, small business, consumer, and municipal products and services to individuals and commercial customers in the United States. The company accepts non-interest bearing and interest-bearing demand deposit, savings, money market, commercial and brokered deposit accounts, as well as certificates of deposit. It also offers commercial and industrial, owner-occupied and investor commercial real estate, construction, residential mortgage, home equity line of credit and home improvement, small installment, term, and other consumer loans, as well as single tenant lease financing, and public and healthcare finance; franchise finance; and small business lending. In addition, the company is involved in the purchase, manage, service, and safekeeping of municipal securities; and provision of municipal finance lending and leasing products to government entities In addition, it offers corporate credit card and treasury management services. First Internet Bancorp was founded in 1999 and is headquartered in Fishers, Indiana.

Receive News & Ratings for Cambridge Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cambridge Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.