Independent Bank (NASDAQ:INDB – Get Free Report) and Capital City Bank Group (NASDAQ:CCBG – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Institutional and Insider Ownership
83.4% of Independent Bank shares are owned by institutional investors. Comparatively, 44.6% of Capital City Bank Group shares are owned by institutional investors. 1.6% of Independent Bank shares are owned by insiders. Comparatively, 19.8% of Capital City Bank Group 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.
Dividends
Independent Bank pays an annual dividend of $2.56 per share and has a dividend yield of 3.3%. Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. Independent Bank pays out 46.2% of its earnings in the form of a dividend. Capital City Bank Group pays out 30.0% 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. Independent Bank has raised its dividend for 15 consecutive years and Capital City Bank Group has raised its dividend for 11 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 Independent Bank and Capital City Bank Group’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% |
| Capital City Bank Group | 21.37% | 11.11% | 1.40% |
Analyst Ratings
This is a summary of recent ratings and target prices for Independent Bank and Capital City Bank Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independent Bank | 1 | 0 | 4 | 2 | 3.00 |
| Capital City Bank Group | 0 | 3 | 1 | 0 | 2.25 |
Independent Bank presently has a consensus price target of $91.86, indicating a potential upside of 19.04%. Capital City Bank Group has a consensus price target of $51.75, indicating a potential upside of 5.90%. Given Independent Bank’s stronger consensus rating and higher probable upside, equities analysts clearly believe Independent Bank is more favorable than Capital City Bank Group.
Volatility and Risk
Independent Bank has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Capital City Bank Group has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Valuation & Earnings
This table compares Independent Bank and Capital City Bank Group”s top-line 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 | 3.12 | $205.12 million | $5.54 | 13.93 |
| Capital City Bank Group | $286.74 million | 2.92 | $61.56 million | $3.60 | 13.57 |
Independent Bank has higher revenue and earnings than Capital City Bank Group. Capital City Bank Group is trading at a lower price-to-earnings ratio than Independent Bank, indicating that it is currently the more affordable of the two stocks.
Summary
Independent Bank beats Capital City Bank Group on 13 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 Capital City Bank Group
Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.
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