Financial Review: Franklin Financial Services (OTCMKTS:FRAF) versus Independent Bank (OTCMKTS:INDB)

Independent Bank (NASDAQ:INDB) and Franklin Financial Services (OTCMKTS:FRAF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.


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

Net Margins Return on Equity Return on Assets
Independent Bank 29.95% 13.38% 1.61%
Franklin Financial Services 9.93% 5.12% 0.49%


Independent Bank pays an annual dividend of $1.76 per share and has a dividend yield of 2.4%. Franklin Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Independent Bank pays out 37.5% of its earnings in the form of a dividend. Independent Bank has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Independent Bank and Franklin Financial Services, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independent Bank 0 2 2 0 2.50
Franklin Financial Services 0 0 0 0 N/A

Independent Bank presently has a consensus price target of $84.50, indicating a potential upside of 16.92%. Given Independent Bank’s higher probable upside, analysts plainly believe Independent Bank is more favorable than Franklin Financial Services.

Institutional & Insider Ownership

70.6% of Independent Bank shares are owned by institutional investors. Comparatively, 5.4% of Franklin Financial Services shares are owned by institutional investors. 1.6% of Independent Bank shares are owned by insiders. Comparatively, 5.4% of Franklin Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Independent Bank and Franklin Financial Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independent Bank $412.21 million 6.02 $121.62 million $4.69 15.41
Franklin Financial Services $57.50 million 2.84 $6.13 million N/A N/A

Independent Bank has higher revenue and earnings than Franklin Financial Services.

Volatility & Risk

Independent Bank has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Franklin Financial Services has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.


Independent Bank beats Franklin Financial Services on 11 of the 15 factors compared between the two stocks.

Independent Bank Company Profile

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 primarily in Massachusetts. Its products and services include demand deposits and time certificates of deposit, as well as checking, money market, and savings accounts. The company's loan portfolio includes commercial loans, such as commercial and industrial, asset-based, commercial real estate, commercial construction, and small business loans; consumer real estate loans, including residential mortgages, home equity loans, and loans for the construction of residential properties; and other consumer loans, such as personal loans. Its commercial and industrial loans cover loans for working capital, other business-related purposes, and floor plan financing; asset-based loans consist primarily of revolving lines of credit and term loans; commercial real estate loans include commercial mortgages for construction purposes that are secured by nonresidential properties, multifamily properties, or one-to-four family rental properties; and small business loans comprise businesses with commercial credit needs. The company also provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as automated teller machine cards and debit cards; and mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities, and life insurance. It operates through 87 full service and 2 limited service retail branches, 13 commercial banking centers, 8 investment management offices, and 1 mortgage lending center in Eastern Massachusetts; and an investment management group/commercial lending office in Rhode Island. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

Franklin Financial Services Company Profile

Franklin Financial Services Corporation offers banking products and services. The company offers demand deposits and interest and non-interest bearing time and savings deposits. The company's deposits include jumbo deposits and retail time deposits. It provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The bank offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. It offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. Franklin Financial Services Corporation was founded in 1906 and is based in Chambersburg, Pennsylvania.

Receive News & Ratings for Independent Bank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Independent Bank and related companies with's FREE daily email newsletter.