Independent Bank (NASDAQ:IBCP) and FirstSun Capital Bancorp (NASDAQ:FSUN) Financial Survey

FirstSun Capital Bancorp (NASDAQ:FSUN) and Independent Bank (NASDAQ:IBCP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for FirstSun Capital Bancorp and Independent Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstSun Capital Bancorp	0	1	3	1	3.00
Independent Bank	0	3	1	0	2.25

FirstSun Capital Bancorp currently has a consensus target price of $43.33, indicating a potential upside of 15.68%. Independent Bank has a consensus target price of $37.00, indicating a potential upside of 4.76%. Given FirstSun Capital Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe FirstSun Capital Bancorp is more favorable than Independent Bank.

Risk and Volatility

FirstSun Capital Bancorp has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

79.4% of Independent Bank shares are owned by institutional investors. 12.5% of FirstSun Capital Bancorp shares are owned by insiders. Comparatively, 5.7% of Independent Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares FirstSun Capital Bancorp and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstSun Capital Bancorp	17.19%	9.12%	1.19%
Independent Bank	21.73%	14.41%	1.27%

Earnings and Valuation

This table compares FirstSun Capital Bancorp and Independent Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstSun Capital Bancorp	$569.65 million	1.83	$97.94 million	$3.46	10.83
Independent Bank	$315.38 million	2.32	$68.54 million	$3.28	10.77

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

Summary

FirstSun Capital Bancorp beats Independent Bank on 10 of the 15 factors compared between the two stocks.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company also provides title insurance services and investment services, as well as automatic teller machines, and internet and mobile banking services. In addition, it operates through branches, drive-thru facilities, and loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.