Independent Bank (NASDAQ:INDB) and Civista Bancshares (NASDAQ:CIVB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
This is a breakdown of recent recommendations for Independent Bank and Civista Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Independent Bank and Civista Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independent Bank||$513.51 million||5.53||$121.17 million||$4.66||18.42|
|Civista Bancshares||$128.05 million||2.98||$32.19 million||$2.55||9.96|
Independent Bank has higher revenue and earnings than Civista Bancshares. Civista Bancshares is trading at a lower price-to-earnings ratio than Independent Bank, indicating that it is currently the more affordable of the two stocks.
Independent Bank pays an annual dividend of $1.92 per share and has a dividend yield of 2.2%. Civista Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Independent Bank pays out 41.2% of its earnings in the form of a dividend. Civista Bancshares pays out 22.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Independent Bank has raised its dividend for 11 consecutive years and Civista Bancshares has raised its dividend for 1 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Independent Bank has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Civista Bancshares has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Insider & Institutional Ownership
85.6% of Independent Bank shares are owned by institutional investors. Comparatively, 53.9% of Civista Bancshares shares are owned by institutional investors. 1.2% of Independent Bank shares are owned by insiders. Comparatively, 2.8% of Civista Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Independent Bank and Civista Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Independent Bank beats Civista Bancshares on 10 of the 15 factors compared between the two stocks.
About Independent Bank
Independent Bank Corp. operates as a bank holding company. The company provides commercial banking, retail banking, and wealth management services and is engaged in sale of retail investments and insurance products in Massachusetts. It offers deposit products, including demand deposits, interest checking, money market accounts, savings accounts and time certificates of deposit. The company provides real estate loans, which include commercial mortgages that are secured by non-residential properties; residential mortgages that are secured primarily by owner-occupied residences; and mortgages for the construction of commercial and residential properties. Independent Bank was founded in 1985 and is headquartered in Rockland, MA.
About Civista Bancshares
Civista Bancshares, Inc. is a financial holding company, which engages in the community banking business. It provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison, Union and Richland. The firm’s primary deposit products are checking, savings, and term certificate accounts, and its lending products are residential mortgage, commercial and installment loans. The company was founded on February 19, 1987 and is headquartered in Sandusky, OH.
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