Esquire Financial (NASDAQ:ESQ) versus Independent Bank (NASDAQ:INDB) Head-To-Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Esquire Financial	29.96%	18.30%	2.30%
Independent Bank	19.14%	8.66%	1.26%

Analyst Ratings

This is a summary of recent recommendations and price targets for Esquire Financial and Independent Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Esquire Financial	0	1	2	1	3.00
Independent Bank	1	2	4	1	2.63

Esquire Financial presently has a consensus target price of $120.33, suggesting a potential upside of 6.25%. Independent Bank has a consensus target price of $90.71, suggesting a potential upside of 10.91%. Given Independent Bank’s higher possible upside, analysts plainly believe Independent Bank is more favorable than Esquire Financial.

Dividends

Esquire Financial pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Independent Bank pays an annual dividend of $2.56 per share and has a dividend yield of 3.1%. Esquire Financial pays out 13.4% of its earnings in the form of a dividend. Independent Bank pays out 50.8% 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. Esquire Financial has increased its dividend for 4 consecutive years and Independent Bank has increased its dividend for 15 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

54.7% of Esquire Financial shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 18.0% of Esquire Financial shares are owned by company insiders. Comparatively, 1.6% of Independent Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Esquire Financial and Independent Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Esquire Financial	$153.26 million	6.38	$50.82 million	$5.95	19.03
Independent Bank	$1.17 billion	3.38	$205.12 million	$5.04	16.23

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

Volatility & Risk

Esquire Financial has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Summary

Esquire Financial beats Independent Bank on 9 of the 17 factors compared between the two stocks.

About Esquire Financial

Esquire Financial Holdings, Inc. operates as the bank holding company for Esquire Bank, National Association that provides commercial banking products and services to legal industry and small businesses, and commercial and retail customers in the United States. The company offers checking, savings, money market, and time deposits, as well as certificates of deposit. It also provides commercial loans, such as short-term financing for inventory, receivables, the purchase of supplies, or other operating needs arising during the normal course of business, as well as loans to its qualified ISO customers; commercial lines of credit; consumer loans consisting of post-settlement consumer and structured settlement loans to plaintiffs and claimants, as well as loans to individuals for debt consolidation, medical expenses, living expenses, payment of outstanding bills, or other consumer needs; and real estate loans, such as multifamily, 1-4 family residential, commercial real estate, and construction loans, as well as merchant services. In addition, it offers cash management, cash sweep, online and mobile banking, individual retirement accounts, and working capital lines of credit. Esquire Financial Holdings, Inc. was founded in 2006 and is headquartered in Jericho, New York.

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.