Independent Bank (NASDAQ:INDB) and Capital City Bank Group (NASDAQ:CCBG) Head-To-Head Review

Capital City Bank Group (NASDAQ:CCBG) and Independent Bank (NASDAQ:INDB) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Analyst Ratings

This is a summary of current ratings for Capital City Bank Group and Independent Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	3	1	0	2.25
Independent Bank	1	0	4	2	3.00

Capital City Bank Group presently has a consensus price target of $51.75, indicating a potential upside of 4.46%. Independent Bank has a consensus price target of $91.86, indicating a potential upside of 12.99%. Given Independent Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Independent Bank is more favorable than Capital City Bank Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	21.85%	11.18%	1.42%
Independent Bank	24.27%	9.61%	1.36%

Dividends

Capital City Bank Group pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. Independent Bank pays an annual dividend of $2.56 per share and has a dividend yield of 3.1%. Capital City Bank Group pays out 29.5% of its earnings in the form of a dividend. Independent Bank pays out 37.9% 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. Capital City Bank Group has raised its dividend for 11 consecutive years and Independent Bank has raised its dividend for 15 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Capital City Bank Group and Independent Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$247.41 million	3.43	$61.56 million	$3.66	13.54
Independent Bank	$1.01 billion	3.80	$205.12 million	$6.75	12.04

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

Institutional and Insider Ownership

44.6% of Capital City Bank Group shares are held by institutional investors. Comparatively, 83.4% of Independent Bank shares are held by institutional investors. 19.8% of Capital City Bank Group shares are held by company insiders. Comparatively, 1.6% of Independent Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Capital City Bank Group has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Summary

Independent Bank beats Capital City Bank Group on 13 of the 18 factors compared between the two stocks.

About Capital City Bank Group

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.

About Independent Bank

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses in the United States. The company provides interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It offers commercial real estate and construction, commercial and industrial, small business, secured and unsecured commercial, and consumer real estate loans; term loans and revolving/nonrevolving lines of credit; overdraft protection and letters of credit; and residential mortgages and home equity loans and lines. In addition, the company provides cash management services, such as ACH transaction processing, positive pay, and remote deposit services; investment management and trust services to individuals, institutions, small businesses, and charitable institutions; mobile, online, and telephone banking; estate settlement, financial planning, tax services, and other services; automated teller machines; debit and credit cards; and mutual fund and unit investment trust shares, third party model portfolios, general securities, fixed and variable annuities, and life insurance products, as well as advisory platforms. Further, it invests in low-income housing tax credit projects; holds, maintains, and disposes foreclosed properties; and operates as an investment advisor. Independent Bank Corp. was founded in 1907 and is headquartered in Rockland, Massachusetts.