International Bancshares (NASDAQ:IBOC) versus Independent Bank (NASDAQ:INDB) Financial Survey

International Bancshares (NASDAQ:IBOC) and Independent Bank (NASDAQ:INDB) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares International Bancshares and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	40.92%	17.50%	2.71%
Independent Bank	22.42%	7.41%	1.11%

Valuation and Earnings

This table compares International Bancshares 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
International Bancshares	$970.10 million	4.39	$411.77 million	$6.55	10.45
Independent Bank	$920.34 million	2.91	$239.50 million	$5.18	12.16

International Bancshares has higher revenue and earnings than Independent Bank. International Bancshares is trading at a lower price-to-earnings ratio than Independent Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

International Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 1.9%. Independent Bank pays an annual dividend of $2.28 per share and has a dividend yield of 3.6%. International Bancshares pays out 20.2% of its earnings in the form of a dividend. Independent Bank pays out 44.0% 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. International Bancshares has increased its dividend for 15 consecutive years and Independent Bank has increased its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for International Bancshares and Independent Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	0	0	N/A
Independent Bank	0	1	0	1	3.00

Independent Bank has a consensus price target of $60.00, suggesting a potential downside of 4.76%. Given Independent Bank’s higher probable upside, analysts clearly believe Independent Bank is more favorable than International Bancshares.

Risk and Volatility

International Bancshares has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 83.4% of Independent Bank shares are held by institutional investors. 13.9% of International Bancshares shares are held by company insiders. Comparatively, 0.9% of Independent Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

International Bancshares beats Independent Bank on 11 of the 16 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

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.