Glen Burnie Bancorp (NASDAQ: GLBZ – Get Rating) and Independent Bank (NASDAQ: IBCP – Get Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Analyst Ratings:
This is a summary of current ratings and price targets for Glen Burnie Bancorp and Independent Bank, as provided by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Glen Burnie Bancorp: | 0: | 0: | 0: | 0: | N / A: |
| Independent Bank: | 0: | 1: | 0: | 0: | 2.00: |
Independent Bank has a consensus target price of $ 20.00, suggesting a potential upside of 6.78%. Given Independent Bank’s higher possible upside, analysts plainly believe Independent Bank is more favorable than Glen Burnie Bancorp.
Dividends:
Glen Burnie Bancorp pays an annual dividend of $ 0.40 per share and has a dividend yield of 3.5%. Independent Bank pays an annual dividend of $ 0.88 per share and has a dividend yield of 4.7%. Glen Burnie Bancorp pays out 53.3% of its earnings in the form of a dividend. Independent Bank pays out 32.5% 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 increased its dividend for 8 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership:
2.6% of Glen Burnie Bancorp shares are owned by institutional investors. Comparatively, 79.6% of Independent Bank shares are owned by institutional investors. 15.2% of Glen Burnie Bancorp shares are owned by insiders. Comparatively, 5.2% of Independent Bank 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.
Profitability:
This table compares Glen Burnie Bancorp and Independent Bank’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Glen Burnie Bancorp: | 15.48% | 6.46% | 0.49% |
| Independent Bank: | 28.08% | 15.18% | 1.27% |
Valuation & Earnings:
This table compares Glen Burnie Bancorp and Independent Bank’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Glen Burnie Bancorp: | $ 14.14 million: | 2.32: | $ 2.52 million: | $ 0.75: | 15.32: |
| Independent Bank: | $ 214.72 million: | 1.84: | $ 62.90 million: | $ 2.71: | 6.91: |
Independent Bank has higher revenue and earnings than Glen Burnie Bancorp. Independent Bank is trading at a lower price-to-earnings ratio than Glen Burnie Bancorp, indicating that it is currently the most affordable of the two stocks.
Volatility and Risk:
Glen Burnie Bancorp has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Summary:
Independent Bank beats Glen Burnie Bancorp on 12 of the 15 factors compared between the two stocks.
About Glen Burnie Bancorp: (Get Rating)
Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company accepts various deposits, including savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, and IRA and SEP accounts, as well as certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, and secured and unsecured commercial loans, as well as consumer installment lending, such as indirect automobile lending services; and residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. In addition, the company offers ancillary products and services comprising safe deposit boxes, money orders, night depositories, automated clearinghouse transactions, and automated teller machine (ATM) services, as well as electronic banking services that include telephone banking, online banking, bill pay , card control, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Further, it provides treasury services, including wire transfer and ACH services, and debit cards. Additionally, the company engages in the business of acquiring, holding, and disposing of real property. It serves customers in northern Anne Arundel county and surrounding areas from its main office and branch in Glen Burnie, Maryland; and branch offices in Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company also has a remote ATM located in Pasadena, Maryland. Glen Burnie Bancorp was founded in 1949 and is based in Glen Burnie, Maryland.
About Independent Bank: (Get Rating)
Independent Bank Corporation operates as the bank holding company for Independent Bank that provides various banking services to individuals and businesses. The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machine, and Internet and mobile banking services. It also provides title insurance, insurance brokerage, and investment services. The company offers its services through approximately 59 branches, two drive-thru facilities, and seven loan production offices in Michigan; and two loan production offices in Ohio. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.
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