Independent Bank (NASDAQ: INDB) is one of 200 public companies in the “Commercial Banks” industry, but how does it compare to its peers? We will compare Independent Bank to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.
Risk and Volatility
Independent Bank has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Independent Bank’s peers have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.
This table compares Independent Bank and its peers top-line revenue, earnings per share (EPS) 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||21.54|
Independent Bank’s peers have higher revenue, but lower earnings than Independent Bank. Independent Bank is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
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 35.4% of their earnings in the form of a dividend. Independent Bank lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares Independent Bank and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Competitors||20.52%||8.69%||0.93%|
Institutional & Insider Ownership
79.7% of Independent Bank shares are held by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are held by institutional investors. 2.7% of Independent Bank shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Independent Bank and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Competitors||392||2957||2370||69||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 4.11%. Given Independent Bank’s peers stronger consensus rating and higher possible upside, analysts clearly believe Independent Bank has less favorable growth aspects than its peers.
Independent Bank peers beat Independent Bank on 8 of the 15 factors compared.
About Independent Bank
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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