Financial Analysis: Independent Bank (NASDAQ:INDB) & Blue Ridge Bankshares (NASDAQ:BRBS)

Blue Ridge Bankshares (NASDAQ:BRBS) and Independent Bank (NASDAQ:INDB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings and Valuation

This table compares Blue Ridge Bankshares and Independent Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Ridge Bankshares	$92.23 million	2.87	-$15.39 million	($0.64)	-5.63
Independent Bank	$689.74 million	4.18	$192.08 million	$4.52	15.00

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

Profitability

This table compares Blue Ridge Bankshares and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Ridge Bankshares	-8.84%	-5.48%	-0.52%
Independent Bank	19.58%	6.57%	1.00%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Blue Ridge Bankshares and Independent Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Ridge Bankshares	0	0	0	0	0.00
Independent Bank	0	1	0	2	3.33

Independent Bank has a consensus price target of $79.00, suggesting a potential upside of 16.55%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Independent Bank is more favorable than Blue Ridge Bankshares.

Insider and Institutional Ownership

50.5% of Blue Ridge Bankshares shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 4.9% of Blue Ridge Bankshares shares are owned by company insiders. Comparatively, 0.9% of Independent Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Blue Ridge Bankshares has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Dividends

Blue Ridge Bankshares pays an annual dividend of $0.49 per share and has a dividend yield of 13.6%. Independent Bank pays an annual dividend of $2.28 per share and has a dividend yield of 3.4%. Blue Ridge Bankshares pays out -76.6% of its earnings in the form of a dividend. Independent Bank pays out 50.4% 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. Blue Ridge Bankshares has raised its dividend for 10 consecutive years and Independent Bank has raised its dividend for 14 consecutive years. Blue Ridge Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Independent Bank beats Blue Ridge Bankshares on 13 of the 17 factors compared between the two stocks.

About Blue Ridge Bankshares

Blue Ridge Bankshares, Inc. operates as a bank holding company for the Blue Ridge Bank, National Association that provides commercial and consumer banking, and financial services. It operates through: Commercial Banking and Mortgage Banking segments. The company accepts checking, savings, money market, cash management, and individual retirement accounts, as well as certificates of deposit. It also offers commercial and industrial, residential mortgages, commercial mortgages, home equity, consumer installment, and guaranteed government loans; and residential mortgage loans and mortgages loans on real estate. In addition, it provides wire, direct deposit payroll, remote deposit, electronic statement, and other services; and property and casualty insurance products to individuals and businesses, as well as online, mobile, and telephone banking services. Further, the company offers employee benefit plans and administration services; management services for personal and corporate trusts, including estate planning and settlement, and trust administration, investment and wealth management services. It operates in Callao, Charlottesville, Chester, Colonial Heights, Culpeper, Fredericksburg, Gordonsville, Harrisonburg, Hartfield, Henrico, Kilmarnock, Louisa, Luray, Martinsville, Midlothian, Mineral, Montross, Orange, Petersburg, Richmond, Shenandoah, Suffolk, Virginia Beach, Warsaw, and White Stone, Virginia; and Greensboro, North Carolina. The company was founded in 1893 and is headquartered in Charlottesville, Virginia.

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.