Head to Head Analysis: Bank First National (NASDAQ:BFC) & Horizon Bancorp (IN) (NASDAQ:HBNC)

Horizon Bancorp (IN) (NASDAQ:HBNC) and Bank First National (NASDAQ:BFC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Horizon Bancorp (IN) and Bank First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horizon Bancorp (IN)	-37.12%	11.56%	1.17%
Bank First National	29.31%	11.68%	1.66%

Volatility & Risk

Horizon Bancorp (IN) has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Bank First National has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Insider & Institutional Ownership

64.5% of Horizon Bancorp (IN) shares are owned by institutional investors. Comparatively, 30.0% of Bank First National shares are owned by institutional investors. 2.8% of Horizon Bancorp (IN) shares are owned by company insiders. Comparatively, 3.4% of Bank First National shares are owned by company 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.

Earnings & Valuation

This table compares Horizon Bancorp (IN) and Bank First National”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Bancorp (IN)	$405.46 million	2.35	-$150.48 million	($3.15)	-5.90
Bank First National	$243.93 million	6.11	$71.50 million	$7.23	20.96

Bank First National has lower revenue, but higher earnings than Horizon Bancorp (IN). Horizon Bancorp (IN) is trading at a lower price-to-earnings ratio than Bank First National, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Horizon Bancorp (IN) and Bank First National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Bancorp (IN)	2	1	2	0	2.00
Bank First National	0	1	3	1	3.00

Horizon Bancorp (IN) currently has a consensus price target of $20.33, suggesting a potential upside of 9.44%. Bank First National has a consensus price target of $150.00, suggesting a potential downside of 1.00%. Given Horizon Bancorp (IN)’s higher probable upside, equities analysts plainly believe Horizon Bancorp (IN) is more favorable than Bank First National.

Dividends

Horizon Bancorp (IN) pays an annual dividend of $0.64 per share and has a dividend yield of 3.4%. Bank First National pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. Horizon Bancorp (IN) pays out -20.3% of its earnings in the form of a dividend. Bank First National pays out 24.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank First National has raised its dividend for 10 consecutive years. Horizon Bancorp (IN) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Bank First National beats Horizon Bancorp (IN) on 12 of the 18 factors compared between the two stocks.

About Horizon Bancorp (IN)

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 Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.