Lakeland Bancorp (NASDAQ: LBAI – Get Rating) and Independent Bank (NASDAQ: IBCP – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Volatility and Risk:
Lakeland Bancorp has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Institutional & Insider Ownership:
49.3% of Lakeland Bancorp shares are owned by institutional investors. Comparatively, 79.6% of Independent Bank shares are owned by institutional investors. 4.7% of Lakeland Bancorp shares are owned by insiders. Comparatively, 5.2% of Independent Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Lakeland Bancorp and Independent Bank’s net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
Valuation & Earnings:
This table compares Lakeland Bancorp and Independent Bank’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|Lakeland Bancorp:||$ 279.68 million:||3.46:||$ 95.04 million:||$ 1.64:||9.10:|
|Independent Bank:||$ 214.72 million:||1.87:||$ 62.90 million:||$ 2.71:||7.04:|
Lakeland Bancorp has higher revenues and earnings than Independent Bank. Independent Bank is trading at a lower price-to-earnings ratio than Lakeland Bancorp, indicating that it is currently the most affordable of the two stocks.
Lakeland Bancorp pays an annual dividend of $ 0.58 per share and has a dividend yield of 3.9%. Independent Bank pays an annual dividend of $ 0.88 per share and has a dividend yield of 4.6%. Lakeland Bancorp pays out 35.4% 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. Lakeland Bancorp has raised its dividend for 13 consecutive years and Independent Bank has raised its dividend for 8 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and price targets for Lakeland Bancorp and Independent Bank, as provided by MarketBeat.com.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
Independent Bank has a consensus price target of $ 20.00, suggesting a potential upside of 4.77%. Given Independent Bank’s higher probable upside, analysts plainly believe Independent Bank is more favorable than Lakeland Bancorp.
Independent Bank beats Lakeland Bancorp on 9 of the 17 factors compared between the two stocks.
Lakeland Bancorp Company Profile: (Get Rating)
Lakeland Bancorp, Inc. operates as the bank holding company for Lakeland Bank that offers various banking products and services for individuals and small to medium sized businesses. The company provides commercial banking services, including savings, money market, and time accounts, as well as demand deposits. It is also involved in lending services, including commercial real estate loans, commercial and industrial loans, short and medium term loans, lines of credit, letters of credit, inventory and accounts receivable financing, real estate construction loans, residential mortgage loans, Small Business Administration (SBA) loans, and merchant credit card services; financing solutions to small and medium-sized companies; online banking, mobile banking, and wire transfer services; and cash management services, such as remote capture of deposits and overnight sweep repurchase agreements. In addition, it provides consumer banking services, which include checking accounts, savings accounts, interest-bearing checking accounts, money market accounts, certificates of deposit, online banking, secured and unsecured loans, consumer installment loans, mortgage loans, and safe deposit services . Further, the company offers investment advisory services for individuals and businesses; and securities brokerage services, including mutual funds and variable annuities, as well as commercial title insurance services and life insurance products. As of December 31, 2021, it operated 48 branch offices located throughout Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties in New Jersey and in Highland Mills, New York; operated six New Jersey regional commercial lending centers in Bernardsville, Iselin, Jackson, Montville, Teaneck and Waldwick; and one New York commercial lending center to serve the Hudson Valley region. The company was incorporated in 1969 and is headquartered in Oak Ridge, New Jersey.
Independent Bank Company Profile: (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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