Independent Bank (NASDAQ:IBCP – Get Free Report) and FirstSun Capital Bancorp (NASDAQ:FSUN – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Profitability
This table compares Independent Bank and FirstSun Capital Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independent Bank | 21.73% | 14.41% | 1.27% |
| FirstSun Capital Bancorp | 17.19% | 9.12% | 1.19% |
Institutional and Insider Ownership
79.4% of Independent Bank shares are owned by institutional investors. 5.7% of Independent Bank shares are owned by insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independent Bank | $315.38 million | 2.32 | $68.54 million | $3.28 | 10.77 |
| FirstSun Capital Bancorp | $569.65 million | 1.83 | $97.94 million | $3.46 | 10.83 |
FirstSun Capital Bancorp has higher revenue and earnings than Independent Bank. Independent Bank is trading at a lower price-to-earnings ratio than FirstSun Capital Bancorp, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Independent Bank has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Independent Bank and FirstSun Capital Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independent Bank | 0 | 3 | 1 | 0 | 2.25 |
| FirstSun Capital Bancorp | 0 | 1 | 3 | 1 | 3.00 |
Independent Bank presently has a consensus price target of $37.00, indicating a potential upside of 4.76%. FirstSun Capital Bancorp has a consensus price target of $43.33, indicating a potential upside of 15.68%. Given FirstSun Capital Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe FirstSun Capital Bancorp is more favorable than Independent Bank.
Summary
FirstSun Capital Bancorp beats Independent Bank on 10 of the 15 factors compared between the two stocks.
About Independent Bank
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.
About FirstSun Capital Bancorp
FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.
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