Independent Bank (NASDAQ:INDB – Get Rating) and California BanCorp (NASDAQ:CALB – Get Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Institutional and Insider Ownership
81.3% of Independent Bank shares are held by institutional investors. Comparatively, 52.8% of California BanCorp shares are held by institutional investors. 0.9% of Independent Bank shares are held by insiders. Comparatively, 10.1% of California BanCorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Independent Bank has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independent Bank | 0 | 2 | 0 | 0 | 2.00 |
| California BanCorp | 0 | 1 | 1 | 0 | 2.50 |
Independent Bank currently has a consensus target price of $84.00, indicating a potential upside of 52.73%. California BanCorp has a consensus target price of $26.33, indicating a potential upside of 50.48%. Given Independent Bank’s higher probable upside, equities research analysts clearly believe Independent Bank is more favorable than California BanCorp.
Earnings and Valuation
This table compares Independent Bank and California BanCorp’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independent Bank | $745.55 million | 3.27 | $263.81 million | $5.94 | 9.26 |
| California BanCorp | $89.65 million | 1.63 | $21.11 million | $2.52 | 6.94 |
Independent Bank has higher revenue and earnings than California BanCorp. California BanCorp is trading at a lower price-to-earnings ratio than Independent Bank, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Independent Bank and California BanCorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independent Bank | 33.75% | 9.54% | 1.39% |
| California BanCorp | 23.54% | 13.00% | 1.08% |
Summary
Independent Bank beats California BanCorp on 9 of the 14 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 the 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 California BanCorp
California BanCorp is a holding company, which engages in the provision of financial services to business and professional corporations. Its products and services include commercial checking, savings and money market accounts, certificates of deposit, treasury and cash management services, foreign exchange services, commercial and industrial loans, asset-based loans, loans to dental and veterinary professionals, commercial real estate loans, residential and commercial construction and development loans, online banking, and mobile banking. The company was founded by Rochelle G. Klein on March 31, 2017 and is headquartered in Oakland, CA.
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