Financial Survey: Independent Bank Co.(MI) (NASDAQ:IBCP) versus Citizens & Northern (NASDAQ:CZNC)

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Independent Bank Co.(MI) (NASDAQ:IBCP) and Citizens & Northern (NASDAQ:CZNC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Independent Bank Co.(MI) and Citizens & Northern, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank Co.(MI) 0 1 1 0 2.50
Citizens & Northern 0 0 0 0 N/A

Independent Bank Co.(MI) presently has a consensus target price of $27.00, indicating a potential upside of 30.25%. Given Independent Bank Co.(MI)’s higher possible upside, equities analysts plainly believe Independent Bank Co.(MI) is more favorable than Citizens & Northern.

Institutional & Insider Ownership

76.4% of Independent Bank Co.(MI) shares are owned by institutional investors. Comparatively, 30.6% of Citizens & Northern shares are owned by institutional investors. 2.2% of Independent Bank Co.(MI) shares are owned by insiders. Comparatively, 3.9% of Citizens & Northern shares are owned by 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.

Earnings & Valuation

This table compares Independent Bank Co.(MI) and Citizens & Northern’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independent Bank Co.(MI) $175.59 million 2.77 $39.84 million $1.68 12.34
Citizens & Northern $68.93 million 4.61 $22.01 million N/A N/A

Independent Bank Co.(MI) has higher revenue and earnings than Citizens & Northern.

Dividends

Independent Bank Co.(MI) pays an annual dividend of $0.72 per share and has a dividend yield of 3.5%. Citizens & Northern pays an annual dividend of $1.08 per share and has a dividend yield of 4.2%. Independent Bank Co.(MI) pays out 42.9% of its earnings in the form of a dividend. Independent Bank Co.(MI) has increased its dividend for 3 consecutive years.

Risk & Volatility

Independent Bank Co.(MI) has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Citizens & Northern has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Independent Bank Co.(MI) and Citizens & Northern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Independent Bank Co.(MI) 22.60% 12.35% 1.25%
Citizens & Northern 26.57% 10.69% 1.62%

Summary

Independent Bank Co.(MI) beats Citizens & Northern on 8 of the 15 factors compared between the two stocks.

Independent Bank Co.(MI) Company Profile

Independent Bank Corporation operates as the holding company for Independent Bank that provides various banking services to individuals and businesses in Michigan. The company offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services, as well as automatic teller machines, and Internet and mobile banking services. It also provides title insurance, investment, and insurance brokerage services. The company offers its services through approximately 67 branches, 1 drive-thru facility, and 12 loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.

Citizens & Northern Company Profile

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York. The company offers deposit products, including various types of checking accounts, passbook and statement savings accounts, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposits, as well as non-insured RepoSweep accounts. It also provides lending products comprising mortgage loans, commercial loans, and consumer loans, as well as commercial letters-of-credit. In addition, the company offers trust and financial management services consisting of administration of trusts and estates, retirement plans, and other employee benefit plans; investment management services; and a range of personal and commercial insurance products, as well as mutual funds, annuities, educational savings accounts, and other investment products through registered agents. Further, it reinsures credit and mortgage, life and accident, and health insurance products. The company operates 26 banking offices in Bradford, Cameron, Lycoming, McKean, Potter, Sullivan, and Tioga counties in Pennsylvania, as well as Steuben County in New York; and a loan production office in Elmira, New York. Citizens & Northern Corporation was founded in 1864 and is headquartered in Wellsboro, Pennsylvania.

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