Comparing Guaranty Bancshares (GNTY) & Independent Bank Corp. (INDB)

Guaranty Bancshares (NASDAQ: GNTY) and Independent Bank Corp. (NASDAQ:INDB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Guaranty Bancshares and Independent Bank Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guaranty Bancshares N/A N/A N/A
Independent Bank Corp. 23.48% 9.76% 1.11%

Dividends

Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. Independent Bank Corp. pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Independent Bank Corp. pays out 42.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Guaranty Bancshares and Independent Bank Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Guaranty Bancshares $67.66 million 4.67 N/A N/A N/A
Independent Bank Corp. $316.23 million 6.26 $82.86 million $3.02 23.87

Independent Bank Corp. has higher revenue and earnings than Guaranty Bancshares.

Volatility and Risk

Guaranty Bancshares has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Independent Bank Corp. has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

19.9% of Guaranty Bancshares shares are owned by institutional investors. Comparatively, 76.4% of Independent Bank Corp. shares are owned by institutional investors. 34.1% of Guaranty Bancshares shares are owned by company insiders. Comparatively, 2.7% of Independent Bank Corp. shares 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Guaranty Bancshares and Independent Bank Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancshares 0 2 0 0 2.00
Independent Bank Corp. 0 4 0 0 2.00

Guaranty Bancshares presently has a consensus target price of $34.00, suggesting a potential upside of 18.55%. Independent Bank Corp. has a consensus target price of $70.67, suggesting a potential downside of 1.99%. Given Guaranty Bancshares’ higher probable upside, research analysts clearly believe Guaranty Bancshares is more favorable than Independent Bank Corp..

Summary

Independent Bank Corp. beats Guaranty Bancshares on 7 of the 11 factors compared between the two stocks.

About Guaranty Bancshares

Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.

About Independent Bank Corp.

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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