BEO Bancorp (OTCMKTS:BEOB – Get Free Report) and Independent Bank (NASDAQ:INDB – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Volatility & Risk
BEO Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Earnings and Valuation
This table compares BEO Bancorp and Independent Bank’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BEO Bancorp | $36.97 million | 1.67 | $8.59 million | N/A | N/A |
| Independent Bank | $757.51 million | 3.01 | $263.81 million | $5.94 | 8.69 |
Dividends
BEO Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Independent Bank pays an annual dividend of $2.20 per share and has a dividend yield of 4.3%. Independent Bank pays out 37.0% of its earnings in the form of a dividend. Independent Bank has raised its dividend for 12 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares BEO Bancorp and Independent Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BEO Bancorp | N/A | N/A | N/A |
| Independent Bank | 33.75% | 9.54% | 1.39% |
Insider and Institutional Ownership
80.5% of Independent Bank shares are owned by institutional investors. 0.9% of Independent Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for BEO Bancorp and Independent Bank, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BEO Bancorp | 0 | 0 | 0 | 0 | N/A |
| Independent Bank | 0 | 2 | 0 | 0 | 2.00 |
Independent Bank has a consensus price target of $84.00, suggesting a potential upside of 62.70%. Given Independent Bank’s higher probable upside, analysts clearly believe Independent Bank is more favorable than BEO Bancorp.
Summary
Independent Bank beats BEO Bancorp on 12 of the 13 factors compared between the two stocks.
About BEO Bancorp
BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, savings, money market, time deposits, and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, farm, and refinancing loans; lines of credit; Internet banking and bill payment services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.
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. It accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. The company also offers commercial and industrial, commercial real estate and construction, small business, and consumer real estate. In addition, it provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as estate settlement, financial planning, tax services, and other services; automated teller machine and debit cards; and mutual fund and unit investment trust shares, general securities, fixed and variable annuities, and life insurance products, as well as advisory platforms. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.
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