BNCCORP (OTCMKTS:BNCC) versus Independent Bank (NASDAQ:IBCP) Head-To-Head Survey

Independent Bank (NASDAQ:IBCP) and BNCCORP (OTCMKTS:BNCC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Independent Bank	22.02%	14.15%	1.27%
BNCCORP	15.52%	8.75%	0.89%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independent Bank	$315.38 million	2.36	$68.54 million	$3.35	10.76
BNCCORP	$57.17 million	2.31	$8.77 million	$2.59	14.42

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

Institutional & Insider Ownership

79.4% of Independent Bank shares are owned by institutional investors. 5.9% of Independent Bank shares are owned by insiders. Comparatively, 28.4% of BNCCORP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Independent Bank has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, BNCCORP has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Independent Bank and BNCCORP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	0	2	1	0	2.33
BNCCORP	0	0	0	0	0.00

Independent Bank presently has a consensus price target of $37.00, indicating a potential upside of 2.66%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Independent Bank is more favorable than BNCCORP.

Summary

Independent Bank beats BNCCORP on 12 of the 14 factors compared between the two stocks.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company also provides title insurance services and investment services, as well as automatic teller machines, and internet and mobile banking services. In addition, it operates through branches, drive-thru facilities, and loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.

About BNCCORP

BNCCORP, Inc. operates as the bank holding company for BNC National Bank that provides community banking, retail and mortgage banking, and wealth management services to businesses and consumers. The company offers commercial banking services, including business financing, commercial real estate lending, small business administration loans, business checking, cash management, corporate credit cards, and merchant services to small to middle-market businesses. It also provides retail and mortgage banking services, such as personal checking and savings products, personal loans, and card services; and residential loans through a consumer direct channel, as well as a retail channel. In addition, the company offers wealth management solutions, including 401(k) and other retirement plans, trust services, and personal wealth advisory services. It offers community banking and wealth management services through 11 locations in Arizona and North Dakota; and mortgage banking services through 7 locations in Arizona, North Dakota, Illinois, and Kansas. The company was incorporated in 1987 and is headquartered in Bismarck, North Dakota.