Independent Bank Group (NASDAQ:IBTX) and County Bancorp (NASDAQ:ICBK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Institutional and Insider Ownership
Get Independent Bank Group alerts:
71.4% of Independent Bank Group shares are held by institutional investors. Comparatively, 24.3% of County Bancorp shares are held by institutional investors. 4.0% of Independent Bank Group shares are held by insiders. Comparatively, 25.1% of County Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Independent Bank Group and County Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Group||0||1||3||0||2.75|
Independent Bank Group currently has a consensus target price of $74.17, indicating a potential upside of 12.92%. County Bancorp has a consensus target price of $31.77, indicating a potential downside of 9.65%. Given Independent Bank Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Independent Bank Group is more favorable than County Bancorp.
Earnings & Valuation
This table compares Independent Bank Group and County Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independent Bank Group||$696.57 million||4.07||$201.21 million||$4.87||13.49|
|County Bancorp||$69.72 million||3.04||$5.48 million||$1.56||22.54|
Independent Bank Group has higher revenue and earnings than County Bancorp. Independent Bank Group is trading at a lower price-to-earnings ratio than County Bancorp, indicating that it is currently the more affordable of the two stocks.
Independent Bank Group pays an annual dividend of $1.36 per share and has a dividend yield of 2.1%. County Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Independent Bank Group pays out 27.9% of its earnings in the form of a dividend. County Bancorp pays out 25.6% 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 Group has increased its dividend for 1 consecutive years and County Bancorp has increased its dividend for 1 consecutive years.
Risk & Volatility
Independent Bank Group has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, County Bancorp has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
This table compares Independent Bank Group and County Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Group||34.94%||9.41%||1.32%|
Independent Bank Group beats County Bancorp on 12 of the 16 factors compared between the two stocks.
About Independent Bank Group
Independent Bank Group, Inc. is a bank holding company, which engages in the provision of a relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. It offers checking, savings, commercial loans, business services and cash management solutions. The company was founded by David R. Brooks in 1988 and is headquartered in McKinney, TX.
About County Bancorp
County Bancorp, Inc. is a bank holding company, which engages in the provision of banking and financial services. The company was founded by William C. Censky, Timothy J. Schneider, Wayne D. Mueller and Mark R. Binversie in May 1996 and is headquartered in Manitowoc, WI.