Contrasting Independent Bank (INDB) and Its Peers

Independent Bank (NASDAQ: INDB) is one of 201 public companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare Independent Bank to similar businesses based on the strength of its earnings, analyst recommendations, valuation, risk, dividends, profitability and institutional ownership.

Risk & Volatility

Independent Bank has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Independent Bank’s rivals have a beta of 0.75, meaning that their average stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Independent Bank and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank 0 3 1 0 2.25
Independent Bank Competitors 507 3087 2473 87 2.35

Independent Bank presently has a consensus target price of $70.67, suggesting a potential downside of 4.25%. As a group, “Commercial Banks” companies have a potential upside of 2.64%. Given Independent Bank’s rivals stronger consensus rating and higher probable 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 revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Independent Bank $329.07 million $76.64 million 24.36
Independent Bank Competitors $338.81 million $71.86 million 21.72

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

Dividends

Independent Bank pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Independent Bank pays out 42.2% 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 35.3% of their earnings in the form of a dividend. Independent Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

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 23.48% 9.76% 1.11%
Independent Bank Competitors 20.38% 8.67% 0.92%

Insider and 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Independent Bank rivals 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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