Beverly Hills Bancorp (OTCMKTS:BHBCQ) & German American Bancorp (NASDAQ:GABC) Critical Review

German American Bancorp (NASDAQ:GABC) and Beverly Hills Bancorp (OTCMKTS:BHBCQ) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
German American Bancorp	23.75%	11.94%	1.33%
Beverly Hills Bancorp	N/A	N/A	N/A

Valuation & Earnings

This table compares German American Bancorp and Beverly Hills Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
German American Bancorp	$210.98 million	5.71	$85.89 million	$2.77	14.64
Beverly Hills Bancorp	N/A	N/A	N/A	N/A	N/A

German American Bancorp has higher revenue and earnings than Beverly Hills Bancorp.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for German American Bancorp and Beverly Hills Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
German American Bancorp	0	2	3	0	2.60
Beverly Hills Bancorp	0	0	0	0	0.00

German American Bancorp presently has a consensus target price of $45.40, suggesting a potential upside of 11.93%. Given German American Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe German American Bancorp is more favorable than Beverly Hills Bancorp.

Insider and Institutional Ownership

46.9% of German American Bancorp shares are owned by institutional investors. 6.2% of German American Bancorp shares are owned by company insiders. Comparatively, 13.0% of Beverly Hills Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

German American Bancorp beats Beverly Hills 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 Beverly Hills Bancorp

Beverly Hills Bancorp Inc. is a financial holding company and conducts its banking and lending operations through its primary subsidiary, First Bank of Beverly Hills. The Bank focuses on niche products, including the origination and acquisition of commercial and multi-family real estate loans. The Bank's principal funding sources consist of certificates of deposits generated through independent brokers and its money desk, borrowings from the Federal Home Loan Bank of San Francisco and repurchase agreements with major investment banks. The Bank is a California state-chartered commercial bank and is regulated by the Federal Deposit Insurance Corporation.Beverly Hills Bancorp's common stock is traded on the Nasdaq National Market under the trading symbol "BHBC".