Inter & Co, Inc. (NASDAQ:INTR – Get Free Report) and American Business Bank (OTCMKTS:AMBZ – Get Free Report) are both small-cap financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Institutional & Insider Ownership
18.9% of Inter & Co, Inc. shares are held by institutional investors. Comparatively, 8.7% of American Business Bank shares are held by institutional investors. 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.
Earnings & Valuation
This table compares Inter & Co, Inc. and American Business Bank’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inter & Co, Inc. | $730.31 million | 2.08 | -$2.15 million | $0.03 | 126.04 |
| American Business Bank | $134.47 million | 2.00 | $48.56 million | $5.38 | 5.53 |
Analyst Recommendations
This is a summary of recent ratings and price targets for Inter & Co, Inc. and American Business Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inter & Co, Inc. | 0 | 2 | 3 | 0 | 2.60 |
| American Business Bank | 0 | 0 | 0 | 0 | N/A |
Inter & Co, Inc. currently has a consensus target price of $4.32, suggesting a potential upside of 14.29%. Given Inter & Co, Inc.’s higher probable upside, equities analysts clearly believe Inter & Co, Inc. is more favorable than American Business Bank.
Risk and Volatility
Inter & Co, Inc. has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, American Business Bank has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
Profitability
This table compares Inter & Co, Inc. and American Business Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inter & Co, Inc. | 1.19% | 0.89% | 0.14% |
| American Business Bank | 31.97% | N/A | N/A |
Summary
Inter & Co, Inc. beats American Business Bank on 9 of the 12 factors compared between the two stocks.
About Inter & Co, Inc.
Inter & Co, Inc., through its subsidiaries, engages in the banking, securities, insurance brokerage, marketplace, asset management, and services businesses. The company's Banking segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. Its Securities segment provides services relating to the purchase, sale, and custody of securities; and portfolio management, as well as the establishment, organization, and management of investment funds. The company's Insurance Brokerage segment offers life, property, auto, financial, lost or stolen credit card, dental, warranties, travel, and credit protection insurance products. Its Marketplace segment operates a digital platform that offer goods and/or services to its customers. The company's Asset Management segment is involved in the operations related to the management of fund portfolios and other assets. Its Services segment provides services in the collection and management of personal information; development and licensing of customized and non-customized computer programs; and technical support, maintenance, and other information technology services. The company was founded in 1994 and is based in Belo Horizonte, Brazil.
About American Business Bank
American Business Bank, a California-chartered bank, provides banking products and services to small and medium-sized firms, non-profits, business executives, and professionals in Southern California. The company offers credit and depository; treasury management; asset-based lending; SBA lending; international banking comprising money transfers, import and export commercial letters of credit, standby letters of credit, documentary and clean collections, and foreign currency exchange services; and consulting and referral services. It operates regional loan production offices located in North Orange County, Orange County, South Bay, San Fernando Valley, Riverside County, Inland Empire, and Long Beach. American Business Bank was incorporated in 1998 and is headquartered in Los Angeles, California.
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