Reviewing Independent Bank (NASDAQ:INDB) & BM Technologies (NYSE:BMTX)

Independent Bank (NASDAQ:INDB) and BM Technologies (NYSE:BMTX) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Independent Bank and BM Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	0	2	0	2	3.00
BM Technologies	0	2	1	0	2.33

Independent Bank currently has a consensus price target of $71.00, suggesting a potential upside of 11.90%. BM Technologies has a consensus price target of $5.40, suggesting a potential upside of 8.00%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Independent Bank is more favorable than BM Technologies.

Profitability

This table compares Independent Bank and BM Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independent Bank	19.58%	6.57%	1.00%
BM Technologies	-22.62%	-47.64%	-26.42%

Institutional and Insider Ownership

83.4% of Independent Bank shares are held by institutional investors. Comparatively, 20.2% of BM Technologies shares are held by institutional investors. 0.8% of Independent Bank shares are held by company insiders. Comparatively, 8.4% of BM Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Independent Bank has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, BM Technologies has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Valuation and Earnings

This table compares Independent Bank and BM Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independent Bank	$694.32 million	3.89	$192.08 million	$4.44	14.29
BM Technologies	$55.25 million	1.10	-$17.33 million	($1.11)	-4.50

Independent Bank has higher revenue and earnings than BM Technologies. BM Technologies 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 BM Technologies on 13 of the 15 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 BM Technologies

BM Technologies, Inc., a financial technology company, facilitates deposits and banking services between a customer and its partner banks in the United States. It offers digital banking and disbursement services to consumers and students through a full service fintech banking platform. The company was formerly known as BankMobile Technologies, Inc. and changed its name to BM Technologies, Inc. in January 2021. BM Technologies, Inc. was founded in 2015 and is headquartered in Wayne, Pennsylvania.