Contrasting West Shore Bank (OTCMKTS:WSSH) & Independent Bank (NASDAQ:INDB)

Independent Bank (NASDAQ:INDB) and West Shore Bank (OTCMKTS:WSSH) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Dividends

Independent Bank pays an annual dividend of $2.36 per share and has a dividend yield of 3.2%. West Shore Bank pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Independent Bank pays out 53.0% of its earnings in the form of a dividend. Independent Bank has increased its dividend for 15 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Independent Bank and West Shore Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independent Bank	17.51%	7.88%	1.16%
West Shore Bank	N/A	N/A	N/A

Insider & Institutional Ownership

83.4% of Independent Bank shares are held by institutional investors. 0.8% of Independent Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Independent Bank and West Shore Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independent Bank	$1.17 billion	3.08	$205.12 million	$4.45	16.57
West Shore Bank	$36.87 million	1.31	$4.41 million	N/A	N/A

Independent Bank has higher revenue and earnings than West Shore Bank.

Risk & Volatility

Independent Bank has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, West Shore Bank has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Independent Bank and West Shore Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	1	3	1	0	2.00
West Shore Bank	0	0	0	0	0.00

Independent Bank currently has a consensus target price of $81.75, indicating a potential upside of 10.88%. Given Independent Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Independent Bank is more favorable than West Shore Bank.

Summary

Independent Bank beats West Shore Bank on 14 of the 15 factors compared between the two stocks.

About Independent Bank

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses in the United States. The company provides interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It offers commercial real estate and construction, commercial and industrial, small business, secured and unsecured commercial, and consumer real estate loans; term loans and revolving/nonrevolving lines of credit; overdraft protection and letters of credit; and residential mortgages and home equity loans and lines. In addition, the company provides cash management services, such as ACH transaction processing, positive pay, and remote deposit services; investment management and trust services to individuals, institutions, small businesses, and charitable institutions; mobile, online, and telephone banking; estate settlement, financial planning, tax services, and other services; automated teller machines; debit and credit cards; and mutual fund and unit investment trust shares, third party model portfolios, general securities, fixed and variable annuities, and life insurance products, as well as advisory platforms. Further, it invests in low-income housing tax credit projects; holds, maintains, and disposes foreclosed properties; and operates as an investment advisor. Independent Bank Corp. was founded in 1907 and is headquartered in Rockland, Massachusetts.

About West Shore Bank

West Shore Bank Corp. operates as the bank holding company for West Shore Bank that provides various banking products and services for individuals and businesses. The company accepts checking, saving, money market, certificates of deposit, and individual retirement accounts. Its loan products include auto, recreational, personal term, commercial real estate, small business administration, municipal, business term, and home mortgage and equity loans; business lines of credit; and letters of credit. The company also offers ATM/debit, credit, and gift and travel cards; wealth planning process, investment management, trusts and estates, retirement planning, west shore investment services; savings bonds; and direct deposit, overdraft, safe deposit boxes, wire transfer, remote deposit capture, merchant card, ACH and wire, sweep accounts, positive pay, bill pay, and online and mobile banking services. The company was founded in 1898 and is based in Ludington, Michigan.