Analyzing Metropolitan Bank (NYSE:MCB) & Independent Bank (NASDAQ:INDB)

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

Earnings and Valuation

This table compares Independent Bank and Metropolitan Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independent Bank	$980.77 million	2.88	$192.08 million	$4.52	14.71
Metropolitan Bank	$276.91 million	2.50	$66.69 million	$5.92	10.46

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

Profitability

This table compares Independent Bank and Metropolitan Bank’s 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%
Metropolitan Bank	13.55%	10.89%	1.02%

Risk and Volatility

Independent Bank has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Metropolitan Bank has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	0	1	0	2	3.33
Metropolitan Bank	0	0	4	0	3.00

Independent Bank presently has a consensus target price of $79.00, indicating a potential upside of 18.85%. Metropolitan Bank has a consensus target price of $78.13, indicating a potential upside of 26.16%. Given Metropolitan Bank’s higher possible upside, analysts plainly believe Metropolitan Bank is more favorable than Independent Bank.

Institutional & Insider Ownership

83.4% of Independent Bank shares are owned by institutional investors. Comparatively, 79.8% of Metropolitan Bank shares are owned by institutional investors. 1.0% of Independent Bank shares are owned by insiders. Comparatively, 6.5% of Metropolitan Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Independent Bank beats Metropolitan Bank on 8 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 Metropolitan Bank

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area. The company offers checking, savings, term deposit, money market, demand deposit, and other interest-bearing transaction accounts. It also provides lending products, including commercial real estate, multi-family, construction, and one-to four-family real estate loans; commercial and industrial loans; consumer loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance and letters of credit; and term loans. In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit cards. The company was formerly known as Metbank Holding Corp. and changed its name to Metropolitan Bank Holding Corp. in January 2007. Metropolitan Bank Holding Corp. was incorporated in 1997 and is headquartered in New York, New York.