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

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

Insider and Institutional Ownership

64.5% of Horizon Bancorp shares are owned by institutional investors. Comparatively, 0.1% of Sberbank of Russia shares are owned by institutional investors. 2.8% of Horizon Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

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

Profitability

This table compares Horizon Bancorp and Sberbank of Russia’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%
Sberbank of Russia	40.80%	21.45%	2.97%

Dividends

Horizon Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 4.3%. Sberbank of Russia pays an annual dividend of $0.85 per share and has a dividend yield of 163.5%. 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.

Earnings and Valuation

This table compares Horizon Bancorp and Sberbank of Russia”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	3.66	$27.98 million	$0.54	27.70
Sberbank of Russia	$49.52 billion	0.06	$16.97 billion	N/A	N/A

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

Analyst Ratings

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

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

Horizon Bancorp presently has a consensus price target of $16.00, indicating a potential upside of 6.95%. Given Horizon Bancorp’s higher probable upside, equities research analysts clearly believe Horizon Bancorp is more favorable than Sberbank of Russia.

Summary

Sberbank of Russia beats Horizon Bancorp on 8 of the 14 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 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.