Independent Bank (NASDAQ: INDB) and Flushing Financial (NASDAQ:FFIC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Volatility & Risk
Independent Bank has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Flushing Financial has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
79.6% of Independent Bank shares are owned by institutional investors. Comparatively, 77.0% of Flushing Financial shares are owned by institutional investors. 2.7% of Independent Bank shares are owned by insiders. Comparatively, 5.0% of Flushing Financial shares are owned 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.
Earnings and Valuation
This table compares Independent Bank and Flushing Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independent Bank||$360.19 million||6.18||$87.20 million||$3.35||24.16|
|Flushing Financial||$244.95 million||3.09||$41.12 million||$1.57||16.88|
Independent Bank has higher revenue and earnings than Flushing Financial. Flushing Financial is trading at a lower price-to-earnings ratio than Independent Bank, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Independent Bank and Flushing Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Independent Bank presently has a consensus price target of $76.33, suggesting a potential downside of 5.70%. Flushing Financial has a consensus price target of $30.00, suggesting a potential upside of 13.21%. Given Flushing Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Flushing Financial is more favorable than Independent Bank.
This table compares Independent Bank and Flushing Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Independent Bank pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Flushing Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Independent Bank pays out 45.4% of its earnings in the form of a dividend. Flushing Financial pays out 51.0% 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 beats Flushing Financial on 10 of the 16 factors compared between the two stocks.
About Independent Bank
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company's products and services include demand deposits and time certificates of deposit, as well as checking, money market, and savings accounts. Its loan portfolio includes commercial loans, such as commercial and industrial, asset-based, commercial real estate, commercial construction, and small business loans; consumer real estate loans, including residential mortgages, home equity loans, and loans for the construction of residential properties; and other consumer loans, such as personal loans. The company's commercial and industrial loans cover loans for working capital, other business-related purposes, and floor plan financing; asset-based loans consist primarily of revolving lines of credit and term loans; commercial real estate loans include commercial mortgages for construction purposes that are secured by nonresidential properties, multifamily properties, or one-to-four family rental properties; and small business loans comprise businesses with commercial credit needs. It also provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as automated teller machine cards and debit cards; and mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities, and life insurance. The company operates through 84 full service and 2 limited service retail branches, 13 commercial banking centers, 6 investment management offices, and 1 mortgage lending center in Eastern Massachusetts; and an investment management group/commercial lending office in Rhode Island. Independent Bank Corp. was founded in 1907 and is headquartered in Rockland, Massachusetts.
About Flushing Financial
Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. The company offers various deposit products, including checking and savings accounts, money market accounts, demand accounts, NOW accounts, and certificates of deposit. It also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. In addition, Flushing Financial Corporation offers banking services to public entities comprising counties, cities, towns, villages, school districts, libraries, fire districts, and various courts. As of December 31, 2017, the company operated 18 full-service offices located in the New York City boroughs of Queens, Brooklyn, and Manhattan; and in Nassau County, New York, as well as an Internet branch. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.
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