Critical Comparison: University Bancorp (OTCMKTS:UNIB) and Independent Bank Group (OTCMKTS:IBTX)
University Bancorp (OTCMKTS:UNIB) and Independent Bank Group (NASDAQ:IBTX) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Valuation and Earnings
This table compares University Bancorp and Independent Bank Group’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||$731.11 million||2.59||$192.74 million||$5.08||8.65|
This is a breakdown of recent recommendations and price targets for University Bancorp and Independent Bank Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Group||0||1||4||0||2.80|
Independent Bank Group has a consensus price target of $43.80, indicating a potential downside of 0.30%. Given Independent Bank Group’s higher probable upside, analysts plainly believe Independent Bank Group is more favorable than University Bancorp.
Risk and Volatility
University Bancorp has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Independent Bank Group has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.
Insider and Institutional Ownership
4.8% of University Bancorp shares are owned by institutional investors. Comparatively, 69.8% of Independent Bank Group shares are owned by institutional investors. 63.7% of University Bancorp shares are owned by company insiders. Comparatively, 10.9% of Independent Bank Group shares are owned by company 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.
This table compares University Bancorp and Independent Bank Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Group||26.11%||8.76%||1.33%|
Independent Bank Group beats University Bancorp on 8 of the 9 factors compared between the two stocks.
University Bancorp Company Profile
University Bancorp, Inc. operates as the holding company for University Bank that provides various personal, business, and community banking services in the United States. It accepts various checking, savings, and deposit accounts. The company's consumer loans include home equity installment, auto, personal, and recreational vehicle loans, as well as home equity lines of credits; and commercial and small business loans comprise commercial real estate, equipment, small business, and non-profit loans, as well as working capital lines of credit. In addition, the company offers online cash management, and online banking and bill pay services; online reorder checks; wire transfer; courier; and insurance products, as well as ATM services. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.
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.
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