Comparing Independent Bank (NASDAQ:INDB) & Bogota Financial (NASDAQ:BSBK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bogota Financial	1.08%	0.35%	0.05%
Independent Bank	17.51%	7.88%	1.16%

Volatility and Risk

Bogota Financial has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

11.6% of Bogota Financial shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 3.8% of Bogota Financial 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 is poised for long-term growth.

Earnings and Valuation

This table compares Bogota Financial and Independent Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bogota Financial	$43.10 million	2.57	-$2.17 million	$0.05	170.90
Independent Bank	$1.17 billion	3.51	$205.12 million	$4.45	18.62

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Bogota Financial and Independent Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bogota Financial	0	1	0	0	2.00
Independent Bank	1	3	1	0	2.00

Independent Bank has a consensus price target of $76.50, indicating a potential downside of 7.66%. Given Independent Bank’s higher probable upside, analysts clearly believe Independent Bank is more favorable than Bogota Financial.

Summary

Independent Bank beats Bogota Financial on 11 of the 13 factors compared between the two stocks.

About Bogota Financial

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.

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.