Head-To-Head Review: California Business Bank (OTCMKTS:CABB) vs. Independent Bank (NASDAQ:IBCP)

California Business Bank (OTCMKTS:CABB) and Independent Bank (NASDAQ:IBCP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Risk & Volatility

California Business Bank has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares California Business Bank and Independent Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Business Bank	N/A	N/A	N/A	N/A	N/A
Independent Bank	$290.35 million	2.35	$59.07 million	$2.94	11.09

Independent Bank has higher revenue and earnings than California Business Bank.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for California Business Bank and Independent Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Business Bank	0	0	0	0	N/A
Independent Bank	0	4	0	0	2.00

Independent Bank has a consensus target price of $32.17, indicating a potential downside of 1.33%. Given Independent Bank’s higher possible upside, analysts plainly believe Independent Bank is more favorable than California Business Bank.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
California Business Bank	N/A	N/A	N/A
Independent Bank	21.11%	16.90%	1.31%

Insider and Institutional Ownership

79.4% of Independent Bank shares are owned by institutional investors. 5.5% of Independent Bank shares are owned by company 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.

Summary

Independent Bank beats California Business Bank on 8 of the 8 factors compared between the two stocks.

About California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.

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.