Independent Bank Group (NASDAQ:IBTX) and Howard Bancorp (NASDAQ:HBMD) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Earnings & Valuation
This table compares Independent Bank Group and Howard Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independent Bank Group||$349.20 million||5.20||$76.51 million||$3.45||17.26|
|Howard Bancorp||$62.55 million||4.71||$7.20 million||$0.79||19.59|
This is a breakdown of recent ratings for Independent Bank Group and Howard Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independent Bank Group||0||1||4||0||2.80|
Independent Bank Group currently has a consensus target price of $75.00, indicating a potential upside of 25.97%. Howard Bancorp has a consensus target price of $20.00, indicating a potential upside of 29.20%. Given Howard Bancorp’s higher possible upside, analysts clearly believe Howard Bancorp is more favorable than Independent Bank Group.
Independent Bank Group pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Howard Bancorp does not pay a dividend. Independent Bank Group pays out 16.2% of its earnings in the form of a dividend. Independent Bank Group has raised its dividend for 4 consecutive years.
This table compares Independent Bank Group and Howard Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independent Bank Group||26.53%||8.51%||1.32%|
Risk and Volatility
Independent Bank Group has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Howard Bancorp has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Institutional & Insider Ownership
57.4% of Independent Bank Group shares are held by institutional investors. Comparatively, 52.3% of Howard Bancorp shares are held by institutional investors. 10.9% of Independent Bank Group shares are held by company insiders. Comparatively, 10.6% of Howard Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Independent Bank Group beats Howard Bancorp on 14 of the 17 factors compared between the two stocks.
About Independent Bank Group
Independent Bank Group, Inc. operates as the bank holding company for Independent Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products, including checking and savings accounts, demand accounts, money market accounts, and certificates of deposit, as well as individual retirement accounts. The company also provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single family interim construction loans; commercial loans comprising SBA guaranteed loans, business term loans, equipment financing, and lines of credit and energy related loans; agricultural loans for farmers and ranchers; consumer loans, such as installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages. In addition, it offers debit cards, online banking, mobile banking, eStatements, bank-by-mail, and direct deposit services; and business accounts and management services, including analyzed business checking, business savings, and treasury management services. As of September 13, 2018, the company operated 74 banking offices locations that extend from the Gulf Coast of Texas to the Rocky Mountains. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.
About Howard Bancorp
Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. The company offers various consumer and business deposit products, including demand deposits, money market accounts, savings accounts, individual retirement accounts, and commercial and retail checking accounts, as well as certificates of deposit. It also commercial loans, such as lines of credit, revolving credit facilities, accounts receivable and inventory financing, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; commercial mortgage loans for owner occupied and investor properties; construction loans; residential mortgage loans; and secured and unsecured consumer loans. In addition, the company offers wire transfer services; automated teller machines and check cards; and safe deposit boxes, as well as credit cards through a third party processor. Further, it provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. As of December 31, 2017, the company operated through a network of 14 full service branches located in Maryland. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Ellicott City, Maryland.
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