Independent Bank (NASDAQ: INDB) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare Independent Bank to related businesses based on the strength of its institutional ownership, risk, valuation, earnings, profitability, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Independent Bank and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank 0 3 1 0 2.25
Independent Bank Competitors 393 2972 2381 70 2.37

Independent Bank currently has a consensus price target of $70.67, suggesting a potential downside of 1.23%. As a group, “Commercial Banks” companies have a potential upside of 3.95%. Given Independent Bank’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Independent Bank has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

79.7% of Independent Bank shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are owned by institutional investors. 2.7% of Independent Bank shares are owned by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Independent Bank and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Independent Bank 23.48% 9.76% 1.11%
Independent Bank Competitors 20.45% 8.68% 0.92%

Volatility and Risk

Independent Bank has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Independent Bank’s competitors have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.

Dividends

Independent Bank pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Independent Bank pays out 42.4% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.5% of their earnings in the form of a dividend. Independent Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Independent Bank and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Independent Bank $329.07 million $76.64 million 23.69
Independent Bank Competitors $338.81 million $71.86 million 19.59

Independent Bank’s competitors have higher revenue, but lower earnings than Independent Bank. Independent Bank is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Independent Bank competitors beat Independent Bank on 8 of the 15 factors compared.

Independent Bank Company Profile

Independent Bank Corp. is a bank holding company. The Company operates through its subsidiary, Rockland Trust Company (the Bank). The Bank is a community-oriented commercial bank. Its community banking business provides a range of banking services, including lending activities, acceptance of demand, savings, and time deposits, and investment management. As of December 31, 2016, the bank had operated 80 full service and three limited service retail branches, 11 commercial banking centers, five investment management offices and one mortgage lending center, all of which located in Eastern Massachusetts. The Bank classifies loans as commercial loans, consumer real estate loans, or other consumer loans. Commercial loans consist of commercial and industrial loans, commercial real estate loans, commercial construction loans, and small business loans. The Bank offers a range of demand deposits, interest checking, money market accounts, savings accounts and time certificates of deposit.

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