BOSTON (TheStreet) -- Small-cap stocks have fallen behind blue chips in the past month, with the Russell 2000 Index dropping 5.3%. However, these companies are positioned to outperform benchmarks.
5. German American Bancorp (GABC) is a bank in southern Indiana.
The numbers: Third-quarter net income decreased 4% to $3.2 million, or 29 cents a share, as revenue dropped 4% to $20 million. The company's gross margin rose from 66% to 71%, but its net margin remained steady at 16%. The company is adequately capitalized, with $60 million of cash reserves. A debt-to-equity ratio of 1.3 indicates higher-than-ideal leverage.
The stock: German American Bancorp has increased 35% this year, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 14, a discount to the market and regional banks. The shares pay a 3.6% dividend yield.
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