Comparing Equitable Financial (OTCMKTS:EQFN) & Independent Bank (NASDAQ:IBCP)

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

Insider & Institutional Ownership

7.2% of Equitable Financial shares are owned by institutional investors. Comparatively, 79.4% of Independent Bank shares are owned by institutional investors. 11.3% of Equitable Financial shares are owned by insiders. Comparatively, 5.7% of Independent Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Equitable Financial 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
Equitable Financial	$31.33 million	1.01	$2.71 million	N/A	N/A
Independent Bank	$323.14 million	2.02	$66.79 million	$3.14	10.04

Independent Bank has higher revenue and earnings than Equitable Financial.

Analyst Recommendations

This is a summary of recent recommendations for Equitable Financial and Independent Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable Financial	0	0	0	0	0.00
Independent Bank	0	3	0	0	2.00

Independent Bank has a consensus price target of $36.67, suggesting a potential upside of 16.33%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Independent Bank is more favorable than Equitable Financial.

Risk and Volatility

Equitable Financial has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equitable Financial	9.44%	6.47%	0.62%
Independent Bank	20.62%	14.71%	1.25%

Summary

Independent Bank beats Equitable Financial on 10 of the 12 factors compared between the two stocks.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.

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.