Critical Review: FVCBankcorp (NASDAQ:FVCB) versus First Internet Bancorp (NASDAQ:INBK)

FVCBankcorp (NASDAQ:FVCB) and First Internet Bancorp (NASDAQ:INBK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FVCBankcorp	0	0	0	0	0.00
First Internet Bancorp	0	2	2	0	2.50

First Internet Bancorp has a consensus price target of $43.63, suggesting a potential upside of 23.76%. Given First Internet Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe First Internet Bancorp is more favorable than FVCBankcorp.

Risk & Volatility

FVCBankcorp has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, First Internet Bancorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FVCBankcorp	4.95%	7.29%	0.73%
First Internet Bancorp	6.92%	6.06%	0.42%

Earnings & Valuation

This table compares FVCBankcorp and First Internet Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FVCBankcorp	$44.48 million	5.43	$3.82 million	$0.27	49.15
First Internet Bancorp	$116.63 million	2.62	$8.42 million	$2.54	13.88

First Internet Bancorp has higher revenue and earnings than FVCBankcorp. First Internet Bancorp is trading at a lower price-to-earnings ratio than FVCBankcorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

43.6% of FVCBankcorp shares are held by institutional investors. Comparatively, 65.5% of First Internet Bancorp shares are held by institutional investors. 14.0% of FVCBankcorp shares are held by insiders. Comparatively, 7.1% of First Internet Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

First Internet Bancorp beats FVCBankcorp on 9 of the 14 factors compared between the two stocks.

About FVCBankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.

About First Internet Bancorp

First Internet Bancorp operates as the bank holding company for First Internet Bank of Indiana that provides commercial, small business, consumer, and municipal banking products and services to individuals and commercial customers in the United States. The company accepts non-interest bearing and interest-bearing demand deposit, commercial deposit, savings, money market, and Banking-as-a-Service 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 public and municipal lending and leasing products to government entities. Further, the company offers corporate credit card and treasury management services. First Internet Bancorp was founded in 1998 and is headquartered in Fishers, Indiana.