FirstSun Capital Bancorp (NASDAQ:FSUN) & Independent Bank (NASDAQ:IBCP) Critical Review

Independent Bank (NASDAQ:IBCPGet Free Report) and FirstSun Capital Bancorp (NASDAQ:FSUNGet Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings & Valuation

This table compares Independent Bank and FirstSun Capital Bancorp”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independent Bank $315.38 million 2.21 $68.54 million $3.28 10.31
FirstSun Capital Bancorp $569.65 million 1.77 $97.94 million $3.46 10.45

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 and Volatility

Independent Bank has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

79.4% of Independent Bank shares are held by institutional investors. 5.7% of Independent Bank shares are held by company insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings 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 currently has a consensus price target of $37.00, suggesting a potential upside of 9.37%. FirstSun Capital Bancorp has a consensus price target of $43.33, suggesting a potential upside of 19.80%. Given FirstSun Capital Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe FirstSun Capital Bancorp is more favorable than Independent Bank.

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% 14.20% 1.26%
FirstSun Capital Bancorp 17.19% 9.00% 1.19%

Summary

FirstSun Capital Bancorp beats Independent Bank on 10 of the 15 factors compared between the two stocks.

About Independent Bank

(Get Free Report)

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

(Get Free Report)

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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