Independent Bank Group (NASDAQ: IBTX) is one of 207 public companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare Independent Bank Group to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, risk, dividends, profitability and earnings.

Dividends

Independent Bank Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Independent Bank Group pays out 13.2% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.6% of their earnings in the form of a dividend.

Institutional & Insider Ownership

46.5% of Independent Bank Group shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 7.7% of Independent Bank Group shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Independent Bank Group 23.52% 8.43% 1.05%
Independent Bank Group Competitors 19.43% 8.30% 0.87%

Analyst Recommendations

This is a breakdown of current recommendations for Independent Bank Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank Group 0 0 5 0 3.00
Independent Bank Group Competitors 386 2942 2400 70 2.37

Independent Bank Group currently has a consensus target price of $71.40, indicating a potential upside of 16.95%. As a group, “Commercial Banks” companies have a potential upside of 0.46%. Given Independent Bank Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Independent Bank Group is more favorable than its peers.

Volatility & Risk

Independent Bank Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Independent Bank Group’s peers have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Independent Bank Group $226.55 million N/A 20.08
Independent Bank Group Competitors N/A N/A 25.36

Independent Bank Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Independent Bank Group beats its peers on 9 of the 14 factors compared.

Independent Bank Group Company Profile

Independent Bank Group, Inc. is a bank holding company. Through the Company’s subsidiary, Independent Bank (the Bank), the Company provides a range of commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. As of December 31, 2016, the Company operated 41 banking offices in the Dallas/North Texas area, the Austin/Central Texas area, and the Houston metropolitan area. The Company offers residential mortgages through its mortgage brokerage division. As a mortgage broker, the Company originates residential mortgages, which are sold into the secondary market shortly after closing. The Company also provides wealth management services to its customers, including investment advisory and other related services. The Company offers a range of commercial and retail lending products to businesses, professionals and individuals. Deposits are the Company’s principal source of funds for use in lending and other general banking purposes.

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