Analyzing Sberbank of Russia (OTCMKTS:SBRCY) and Horizon Bancorp (NASDAQ:HBNC)

Sberbank of Russia (OTCMKTS:SBRCY) and Horizon Bancorp (NASDAQ:HBNC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Sberbank of Russia and Horizon Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sberbank of Russia	0	0	0	0	N/A
Horizon Bancorp	0	2	2	0	2.50

Horizon Bancorp has a consensus price target of $16.00, indicating a potential upside of 2.04%. Given Horizon Bancorp’s higher probable upside, analysts plainly believe Horizon Bancorp is more favorable than Sberbank of Russia.

Valuation and Earnings

This table compares Sberbank of Russia and Horizon Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sberbank of Russia	$49.52 billion	0.06	$16.97 billion	N/A	N/A
Horizon Bancorp	$180.49 million	3.83	$27.98 million	$0.54	29.04

Sberbank of Russia has higher revenue and earnings than Horizon Bancorp.

Dividends

Sberbank of Russia pays an annual dividend of $0.85 per share and has a dividend yield of 163.5%. Horizon Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 4.1%. 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. Horizon Bancorp has raised its dividend for 13 consecutive years.

Insider & Institutional Ownership

0.1% of Sberbank of Russia shares are owned by institutional investors. Comparatively, 64.5% of Horizon Bancorp shares are owned by institutional investors. 2.8% of Horizon Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Sberbank of Russia has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Horizon Bancorp has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Sberbank of Russia and Horizon Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sberbank of Russia	40.80%	21.45%	2.97%
Horizon Bancorp	5.50%	8.17%	0.74%

Summary

Sberbank of Russia beats Horizon Bancorp on 8 of the 14 factors compared between the two stocks.

About Sberbank of Russia

Sberbank of Russia, together with its subsidiaries, provides corporate and retail banking products and services to individuals, small businesses, corporate clients, and financial institutions. The company offers deposit products; pension accounts; payment, transfer, brokerage, and asset management services; car, housing, education, and consumer loans; mortgages; debit and credit cards, and overdraft service; and refinancing products. It also provides derivative, financial instrument, foreign currency, precious metal, corporate structured, and commodities and securities products, as well as debt and capital markets funding, documentary, and other commission services. In addition, it offers life, property, bank card, accident, liability, trust management, investment and universal life, travel, and mutual investment funds insurance products, as well as individual pension plans and corporate pension programs. Additionally, the company provides business bank accounts, platform for exporters and importers, merchant acquiring and international trading services, and corporate cards for small businesses; and loans, investment products and capital markets services, fund investment services, and banking services for corporate clients. It also provides trade finance, interbank lending, currency risk hedging, and treasury services; deposits, custody services, and electronic trading systems; and settlement and cash collection services to financial institutions. As of December 31, 2020, the company operated 11 Regional banks and 14,162 branches in Russia. The company also has operations in 18 countries internationally. Sberbank of Russia was founded in 1841 and is headquartered in Moscow, Russia.

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.