Independent Bank Corporation (NASDAQ: IBCP) is one of 327 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Independent Bank Corporation to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Independent Bank Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Independent Bank Corporation pays out 35.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 37.1% of their earnings in the form of a dividend.
This is a summary of recent ratings for Independent Bank Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Corporation||0||3||0||0||2.00|
|Independent Bank Corporation Competitors||1975||7852||8054||304||2.37|
Independent Bank Corporation currently has a consensus price target of $22.50, indicating a potential upside of 0.90%. As a group, “Banks” companies have a potential downside of 7.02%. Given Independent Bank Corporation’s higher possible upside, equities research analysts plainly believe Independent Bank Corporation is more favorable than its competitors.
Insider and Institutional Ownership
80.9% of Independent Bank Corporation shares are held by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are held by institutional investors. 5.7% of Independent Bank Corporation shares are held by insiders. Comparatively, 10.5% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Independent Bank Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Corporation||17.68%||9.48%||0.93%|
|Independent Bank Corporation Competitors||18.86%||8.82%||0.93%|
Risk and Volatility
Independent Bank Corporation has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Independent Bank Corporation’s competitors have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.
Earnings and Valuation
This table compares Independent Bank Corporation and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Independent Bank Corporation||$125.86 million||N/A||19.91|
|Independent Bank Corporation Competitors||N/A||N/A||18.91|
Independent Bank Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Independent Bank Corporation competitors beat Independent Bank Corporation on 8 of the 14 factors compared.
About Independent Bank Corporation
Independent Bank Corporation is a bank holding company. The Company owns all of the outstanding stock of Independent Bank (the Bank). The Bank focuses on commercial banking industry. The Bank offers a range of banking services to individuals and businesses, including checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending and safe deposit box services. The Company’s principal markets are the rural and suburban communities across lower Michigan. As of December 31, 2016, the Company’s markets were served by the Bank’s main office in Grand Rapids, Michigan, and a total of 62 branches, a drive-in facility and 12 loan production offices. The Bank’s branches provide lobby and drive-in services, as well as automatic teller machines (ATMs). Its Bank also offers title insurance services through a subsidiary, and investment and insurance services through a third party agreement with Cetera Investment Services LLC.
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