Head to Head Survey: BNCCORP (OTCMKTS:BNCC) and Independent Bank (NASDAQ:IBCP)

BNCCORP (OTCMKTS:BNCC) and Independent Bank (NASDAQ:IBCP) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares BNCCORP and Independent Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BNCCORP	$57.17 million	2.31	$8.77 million	$2.59	14.42
Independent Bank	$315.38 million	2.36	$68.54 million	$3.35	10.76

Independent Bank has higher revenue and earnings than BNCCORP. Independent Bank is trading at a lower price-to-earnings ratio than BNCCORP, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BNCCORP has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BNCCORP and Independent Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BNCCORP	0	0	0	0	0.00
Independent Bank	0	2	1	0	2.33

Independent Bank has a consensus price target of $37.00, suggesting a potential upside of 2.66%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Independent Bank is more favorable than BNCCORP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BNCCORP	15.52%	8.75%	0.89%
Independent Bank	22.02%	14.15%	1.27%

Insider and Institutional Ownership

79.4% of Independent Bank shares are held by institutional investors. 28.4% of BNCCORP shares are held by company insiders. Comparatively, 5.9% of Independent Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Independent Bank beats BNCCORP on 12 of the 14 factors compared between the two stocks.

About BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.

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.