Critical Review: German American Bancorp (NASDAQ:GABC) and Albina Community Bancorp (OTCMKTS:ACBCQ)

German American Bancorp (NASDAQ:GABC) and Albina Community Bancorp (OTCMKTS:ACBCQ) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for German American Bancorp and Albina Community Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	1	1	0	2.50
Albina Community Bancorp	0	0	0	0	N/A

German American Bancorp currently has a consensus target price of $37.50, indicating a potential upside of 12.88%. Given German American Bancorp’s higher possible upside, research analysts plainly believe German American Bancorp is more favorable than Albina Community Bancorp.

Valuation & Earnings

This table compares German American Bancorp and Albina Community Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$316.92 million	3.10	$85.89 million	$2.92	11.38
Albina Community Bancorp	N/A	N/A	N/A	N/A	N/A

German American Bancorp has higher revenue and earnings than Albina Community Bancorp.

Volatility & Risk

German American Bancorp has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Albina Community Bancorp has a beta of 3.99, suggesting that its stock price is 299% more volatile than the S&P 500.

Institutional & Insider Ownership

46.9% of German American Bancorp shares are held by institutional investors. 4.6% of German American Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares German American Bancorp and Albina Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	27.10%	14.26%	1.42%
Albina Community Bancorp	N/A	N/A	N/A

Summary

German American Bancorp beats Albina Community Bancorp on 8 of the 9 factors compared between the two stocks.

About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company for German American Bank that provides retail and commercial banking services. The company operates through three segments: Core Banking, Wealth Management Services, and Insurance Operations. The Core Banking segment accepts deposits from the general public; and originates consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, as well as sells residential mortgage loans in the secondary market. The Wealth Management segment provides trust, investment advisory, brokerage, and retirement planning services. The Insurance Operations segment offers a range of personal and corporate property and casualty insurance products. It also offers checking, saving, and individual retirement accounts; certificates of deposit; wire transfer; credit cards; home equity, mortgages, and small business; treasury management; and online and mobile banking, bill pay, digital wallet, mobile check deposit, credit score and report, money management, and estatements, as well as wealth advisory. German American Bancorp, Inc. was founded in 1910 and is based in Jasper, Indiana.

About Albina Community Bancorp

Albina Community Bancorp operates as a bank holding company for Albina Community Bank that provides various banking products and services in Portland. The company offers checking, savings, and money market deposit accounts, as well as certificates of deposits and individual retirement accounts. It also provides personal loans, home equity lines of credit, operating lines of credit, term loans, and commercial real estate loans; government guaranteed lending and accounts receivable financing; and credit cards. In addition, the company offers online banking and cash management, merchant, wire transfer, online bill payment, business payroll, deposit courier, night depository, automated customer, free cash withdrawals, and workplace banking services, as well as overdraft protection products. Albina Community Bancorp was incorporated in 1993 and is based in Portland, Oregon. On September 17, 2014, Albina Community Bancorp filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Oregon.