Comparing Princeton Bancorp (NASDAQ:BPRN) & Independent Bank (NASDAQ:INDB)

Princeton Bancorp (NASDAQ:BPRN) and Independent Bank (NASDAQ:INDB) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Dividends

Princeton Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 4.0%. Independent Bank pays an annual dividend of $2.36 per share and has a dividend yield of 3.1%. Princeton Bancorp pays out 54.5% of its earnings in the form of a dividend. Independent Bank pays out 57.4% 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. Independent Bank has increased its dividend for 15 consecutive years. Princeton Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Princeton Bancorp has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Valuation & Earnings

This table compares Princeton Bancorp and Independent Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Princeton Bancorp	$131.10 million	1.82	$17.37 million	$2.57	13.74
Independent Bank	$773.81 million	4.84	$192.08 million	$4.11	18.37

Independent Bank has higher revenue and earnings than Princeton Bancorp. Princeton Bancorp 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 Princeton Bancorp and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Princeton Bancorp	N/A	N/A	N/A
Independent Bank	16.64%	7.19%	1.08%

Analyst Ratings

This is a summary of current ratings and recommmendations for Princeton Bancorp and Independent Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Princeton Bancorp	0	2	0	1	2.67
Independent Bank	0	4	1	1	2.50

Princeton Bancorp presently has a consensus target price of $35.00, suggesting a potential downside of 0.91%. Independent Bank has a consensus target price of $76.80, suggesting a potential upside of 1.72%. Given Independent Bank’s higher probable upside, analysts plainly believe Independent Bank is more favorable than Princeton Bancorp.

Institutional & Insider Ownership

43.4% of Princeton Bancorp shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 23.0% of Princeton Bancorp shares are owned by company insiders. Comparatively, 0.8% 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 Princeton Bancorp on 13 of the 17 factors compared between the two stocks.

About Princeton Bancorp

Princeton Bancorp, Inc. operates as the bank holding company for The Bank of Princeton that provides various banking products and services. It accepts various deposit products, including checking, savings, attorney trust, and money market accounts, as well as certificates of deposit. The company also offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, and commercial business loans, as well as consumer loans, including home equity loans and lines of credit. In addition, it provides debit and credit cards, and money orders, direct deposit, automated teller machines, cashier's checks, safe deposit boxes, online banking, wire transfers, night depository, remote deposit capture, bank-by-mail, online, and automated telephone banking services, as well as payroll-related services and merchant credit card processing services. Further, the company offers full on-line statements, on-line bill payment, account inquiries, mobile banking, transaction histories and details, and account-to-account transfer services. Princeton Bancorp, Inc. was founded in 2007 and is headquartered in Princeton, New Jersey.

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.