Independent Bank (IBCP) vs. The Competition Financial Analysis

Independent Bank (NASDAQ:IBCP) is one of 919 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Independent Bank to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Independent Bank and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	0	2	3	0	2.60
Independent Bank Competitors	7484	30232	27813	1478	2.35

Independent Bank currently has a consensus price target of $41.00, suggesting a potential upside of 10.84%. As a group, “Banks” companies have a potential upside of 14.25%. Given Independent Bank’s rivals higher possible upside, analysts plainly believe Independent Bank has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Independent Bank and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Independent Bank	$243.00 million	$68.54 million	10.88
Independent Bank Competitors	$9.95 billion	$2.42 billion	21.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Independent Bank	21.63%	14.57%	1.34%
Independent Bank Competitors	15.65%	9.43%	0.93%

Risk and Volatility

Independent Bank has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Independent Bank’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

Independent Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. Independent Bank pays out 32.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Independent Bank has raised its dividend for 11 consecutive years. Independent Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

79.4% of Independent Bank shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 5.9% of Independent Bank shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

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

Independent Bank Company Profile

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company also provides title insurance services and investment services, as well as automatic teller machines, and internet and mobile banking services. In addition, it operates through branches, drive-thru facilities, and loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.