Independent Bank (NASDAQ:INDB – Get Free Report) and Citizens Community Bancorp (NASDAQ:CZWI – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Profitability
This table compares Independent Bank and Citizens Community Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independent Bank | 20.31% | 9.19% | 1.31% |
| Citizens Community Bancorp | 12.94% | 6.77% | 0.72% |
Analyst Ratings
This is a summary of current recommendations and price targets for Independent Bank and Citizens Community Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independent Bank | 1 | 1 | 4 | 1 | 2.71 |
| Citizens Community Bancorp | 0 | 4 | 1 | 0 | 2.20 |
Insider and Institutional Ownership
83.4% of Independent Bank shares are held by institutional investors. Comparatively, 55.1% of Citizens Community Bancorp shares are held by institutional investors. 1.6% of Independent Bank shares are held by company insiders. Comparatively, 4.1% of Citizens Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Independent Bank has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Citizens Community Bancorp has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
Earnings and Valuation
This table compares Independent Bank and Citizens Community Bancorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independent Bank | $1.17 billion | 3.33 | $205.12 million | $5.54 | 14.86 |
| Citizens Community Bancorp | $98.77 million | 2.16 | $14.42 million | $1.31 | 16.84 |
Independent Bank has higher revenue and earnings than Citizens Community Bancorp. Independent Bank is trading at a lower price-to-earnings ratio than Citizens Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Independent Bank pays an annual dividend of $2.56 per share and has a dividend yield of 3.1%. Citizens Community Bancorp pays an annual dividend of $0.42 per share and has a dividend yield of 1.9%. Independent Bank pays out 46.2% of its earnings in the form of a dividend. Citizens Community Bancorp pays out 32.1% 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 15 consecutive years and Citizens Community Bancorp has raised its dividend for 6 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Independent Bank beats Citizens Community Bancorp on 15 of the 18 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 in the United States. The company provides interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It offers commercial real estate and construction, commercial and industrial, small business, secured and unsecured commercial, and consumer real estate loans; term loans and revolving/nonrevolving lines of credit; overdraft protection and letters of credit; and residential mortgages and home equity loans and lines. In addition, the company provides cash management services, such as ACH transaction processing, positive pay, and remote deposit services; investment management and trust services to individuals, institutions, small businesses, and charitable institutions; mobile, online, and telephone banking; estate settlement, financial planning, tax services, and other services; automated teller machines; debit and credit cards; and mutual fund and unit investment trust shares, third party model portfolios, general securities, fixed and variable annuities, and life insurance products, as well as advisory platforms. Further, it invests in low-income housing tax credit projects; holds, maintains, and disposes foreclosed properties; and operates as an investment advisor. Independent Bank Corp. was founded in 1907 and is headquartered in Rockland, Massachusetts.
About Citizens Community Bancorp
Citizens Community Bancorp, Inc. operates as a bank holding company for Citizens Community Federal N.A. that provides various traditional community banking services to businesses, agricultural operators, and consumers. It accepts various deposit products, including demand deposits, savings and money market accounts, and certificates of deposit. The company also offers various loan products, such as commercial real estate, commercial and industrial, agricultural real estate, agricultural operating, and consumer loans; and one-to-four family residential mortgages and home equity lines-of-credit. In addition, it maintains a portfolio of investments comprising mortgage-backed, corporate asset-backed, U.S. Government sponsored agency, and corporate debt securities. Citizens Community Bancorp, Inc. was founded in 1938 and is based in Eau Claire, Wisconsin.
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