Independent Bank Group (NASDAQ:IBTX) and Westbury Bancorp (OTCMKTS:WBBW) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Dividends

Independent Bank Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Westbury Bancorp does not pay a dividend. Independent Bank Group pays out 22.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Independent Bank Group and Westbury Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank Group 0 1 2 0 2.67
Westbury Bancorp 0 0 0 0 N/A

Independent Bank Group currently has a consensus target price of $62.67, indicating a potential upside of 19.25%. Given Independent Bank Group’s higher possible upside, equities research analysts plainly believe Independent Bank Group is more favorable than Westbury Bancorp.

Volatility & Risk

Independent Bank Group has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Westbury Bancorp has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Valuation and Earnings

This table compares Independent Bank Group and Westbury Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independent Bank Group $449.51 million 5.11 $128.26 million $4.46 11.78
Westbury Bancorp $34.71 million 2.52 $4.20 million N/A N/A

Independent Bank Group has higher revenue and earnings than Westbury Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Independent Bank Group 26.06% 9.18% 1.45%
Westbury Bancorp 16.93% N/A N/A

Insider & Institutional Ownership

62.5% of Independent Bank Group shares are held by institutional investors. Comparatively, 8.6% of Westbury Bancorp shares are held by institutional investors. 10.9% of Independent Bank Group shares are held by insiders. Comparatively, 10.9% of Westbury Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Independent Bank Group beats Westbury Bancorp on 11 of the 14 factors compared between the two stocks.

Independent Bank Group Company Profile

Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides various commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products, including demand deposits, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment financing, and lines of credit and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages. In addition, it offers debit cards, online and mobile banking, eStatement, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services. As of December 31, 2018, the company operated 73 branches. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.

Westbury Bancorp Company Profile

Westbury Bancorp, Inc. operates as a savings and loan holding company for Westbury Bank that provides various banking and financial products and services for individuals, families, and businesses in the United States. The company offers deposit accounts, such as non-interest-bearing and interest-bearing checking accounts, passbook and statement savings accounts, variable rate money market accounts, certificates of deposit, and term certificate accounts. Its loan portfolio includes commercial real estate loans, one-to four-family residential real estate loans, multi-family loans, commercial business loans, and construction loans; and consumer loans comprising home equity lines of credit and automobile loans, as well as education loans. In addition, the company offers online and mobile banking, and remote deposit capture services. It operates eight banking offices in Washington and Waukesha counties, Wisconsin; and loan production offices in Dane and Outagamie counties, Wisconsin. The company also operates nine ATMs at its branches and one other at a stand-alone location. Westbury Bancorp, Inc. was founded in 1926 and is headquartered in West Bend, Wisconsin.

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