Horizon Bancorp (NASDAQ:HBNC – Get Free Report) and Peoples Bancorp of North Carolina (NASDAQ:PEBK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Insider and Institutional Ownership
64.5% of Horizon Bancorp shares are owned by institutional investors. Comparatively, 43.8% of Peoples Bancorp of North Carolina shares are owned by institutional investors. 2.8% of Horizon Bancorp shares are owned by company insiders. Comparatively, 16.9% of Peoples Bancorp of North Carolina shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Horizon Bancorp and Peoples Bancorp of North Carolina, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Horizon Bancorp | 0 | 2 | 1 | 0 | 2.33 |
| Peoples Bancorp of North Carolina | 0 | 0 | 0 | 0 | N/A |
Earnings & Valuation
This table compares Horizon Bancorp and Peoples Bancorp of North Carolina”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Horizon Bancorp | $180.49 million | 3.87 | $27.98 million | $0.54 | 29.30 |
| Peoples Bancorp of North Carolina | $94.78 million | 1.53 | $15.55 million | $2.93 | 9.09 |
Horizon Bancorp has higher revenue and earnings than Peoples Bancorp of North Carolina. Peoples Bancorp of North Carolina is trading at a lower price-to-earnings ratio than Horizon Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Horizon Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Peoples Bancorp of North Carolina pays an annual dividend of $0.76 per share and has a dividend yield of 2.9%. Horizon Bancorp pays out 118.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peoples Bancorp of North Carolina pays out 25.9% of its earnings in the form of a dividend. Horizon Bancorp has increased its dividend for 13 consecutive years and Peoples Bancorp of North Carolina has increased its dividend for 11 consecutive years. Horizon Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Horizon Bancorp has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Peoples Bancorp of North Carolina has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.
Profitability
This table compares Horizon Bancorp and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Horizon Bancorp | 5.50% | 8.17% | 0.74% |
| Peoples Bancorp of North Carolina | 15.80% | 13.85% | 1.00% |
Summary
Horizon Bancorp beats Peoples Bancorp of North Carolina on 10 of the 16 factors compared between the two stocks.
About Horizon Bancorp
Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that engages in the provision of commercial and retail banking services. The company offers checking, saving, money market, certificate of deposits, individual retirement accounts, and time deposits, as well as non-interest- and interest-bearing demand deposits. It also provides commercial, residential real estate, mortgage, home equity, auto, personal, business, agricultural, and SBA loans, as well as credit cards. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; debit cards; treasury management; online and mobile banking; wealth, retirement, and estate and trust services; and sells various insurance products. It operates through full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.
About Peoples Bancorp of North Carolina
Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.
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