West Shore Bank (OTCMKTS:WSSH) & Independent Bank (NASDAQ:INDB) Critical Analysis

West Shore Bank (OTCMKTS:WSSH) and Independent Bank (NASDAQ:INDB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares West Shore Bank and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Shore Bank	N/A	N/A	N/A
Independent Bank	17.51%	7.88%	1.16%

Insider and Institutional Ownership

83.4% of Independent Bank shares are held by institutional investors. 0.8% of Independent Bank shares are held by 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for West Shore Bank and Independent Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Shore Bank	0	0	0	0	0.00
Independent Bank	1	3	1	0	2.00

Independent Bank has a consensus target price of $81.75, suggesting a potential upside of 9.44%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Independent Bank is more favorable than West Shore Bank.

Risk & Volatility

West Shore Bank has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Earnings & Valuation

This table compares West Shore Bank and Independent Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Shore Bank	$36.87 million	1.21	$4.41 million	N/A	N/A
Independent Bank	$1.17 billion	3.12	$205.12 million	$4.45	16.79

Independent Bank has higher revenue and earnings than West Shore Bank.

Dividends

West Shore Bank pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Independent Bank pays an annual dividend of $2.36 per share and has a dividend yield of 3.2%. Independent Bank pays out 53.0% of its earnings in the form of a dividend. Independent Bank has increased its dividend for 15 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Independent Bank beats West Shore Bank on 14 of the 15 factors compared between the two stocks.

About West Shore Bank

West Shore Bank Corp. operates as the bank holding company for West Shore Bank that provides various banking products and services for individuals and businesses. The company accepts checking, saving, money market, certificates of deposit, and individual retirement accounts. Its loan products include auto, recreational, personal term, commercial real estate, small business administration, municipal, business term, and home mortgage and equity loans; business lines of credit; and letters of credit. The company also offers ATM/debit, credit, and gift and travel cards; wealth planning process, investment management, trusts and estates, retirement planning, west shore investment services; savings bonds; and direct deposit, overdraft, safe deposit boxes, wire transfer, remote deposit capture, merchant card, ACH and wire, sweep accounts, positive pay, bill pay, and online and mobile banking services. The company was founded in 1898 and is based in Ludington, Michigan.

About Independent Bank

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses in the United States. The company provides interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It offers commercial real estate and construction, commercial and industrial, small business, secured and unsecured commercial, and consumer real estate loans; term loans and revolving/nonrevolving lines of credit; overdraft protection and letters of credit; and residential mortgages and home equity loans and lines. In addition, the company provides cash management services, such as ACH transaction processing, positive pay, and remote deposit services; investment management and trust services to individuals, institutions, small businesses, and charitable institutions; mobile, online, and telephone banking; estate settlement, financial planning, tax services, and other services; automated teller machines; debit and credit cards; and mutual fund and unit investment trust shares, third party model portfolios, general securities, fixed and variable annuities, and life insurance products, as well as advisory platforms. Further, it invests in low-income housing tax credit projects; holds, maintains, and disposes foreclosed properties; and operates as an investment advisor. Independent Bank Corp. was founded in 1907 and is headquartered in Rockland, Massachusetts.