Independent Bank Corp. (NASDAQ: INDB) is one of 200 public companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare Independent Bank Corp. to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, earnings and risk.

Dividends

Independent Bank Corp. pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Independent Bank Corp. pays out 42.4% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.3% of their earnings in the form of a dividend. Independent Bank Corp. lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Independent Bank Corp. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Independent Bank Corp. 23.48% 9.76% 1.11%
Independent Bank Corp. Competitors 20.41% 8.68% 0.92%

Valuation & Earnings

This table compares Independent Bank Corp. and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Independent Bank Corp. $329.07 million $76.64 million 23.20
Independent Bank Corp. Competitors $341.79 million $72.49 million 21.18

Independent Bank Corp.’s rivals have higher revenue, but lower earnings than Independent Bank Corp.. Independent Bank Corp. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Independent Bank Corp. and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank Corp. 0 4 0 0 2.00
Independent Bank Corp. Competitors 363 2866 2316 68 2.37

Independent Bank Corp. currently has a consensus target price of $70.67, suggesting a potential upside of 0.88%. As a group, “Commercial Banks” companies have a potential upside of 5.73%. Given Independent Bank Corp.’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Independent Bank Corp. has less favorable growth aspects than its rivals.

Risk and Volatility

Independent Bank Corp. has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Independent Bank Corp.’s rivals have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

78.6% of Independent Bank Corp. shares are held by institutional investors. Comparatively, 46.1% of shares of all “Commercial Banks” companies are held by institutional investors. 2.7% of Independent Bank Corp. shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Independent Bank Corp. rivals beat Independent Bank Corp. on 8 of the 15 factors compared.

About Independent Bank Corp.

Independent Bank Corp. is a bank holding company. The Company operates through its subsidiary, Rockland Trust Company (the Bank). The Bank is a community-oriented commercial bank. Its community banking business provides a range of banking services, including lending activities, acceptance of demand, savings, and time deposits, and investment management. As of December 31, 2016, the bank had operated 80 full service and three limited service retail branches, 11 commercial banking centers, five investment management offices and one mortgage lending center, all of which located in Eastern Massachusetts. The Bank classifies loans as commercial loans, consumer real estate loans, or other consumer loans. Commercial loans consist of commercial and industrial loans, commercial real estate loans, commercial construction loans, and small business loans. The Bank offers a range of demand deposits, interest checking, money market accounts, savings accounts and time certificates of deposit.

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