Independent Bank (NASDAQ:INDB) vs. Landmark Bancorp (NASDAQ:LARK) Critical Survey

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

Institutional and Insider Ownership

25.7% of Landmark Bancorp shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 9.8% of Landmark Bancorp shares are owned by company insiders. Comparatively, 1.6% of Independent Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Landmark Bancorp	20.56%	12.49%	1.25%
Independent Bank	20.31%	9.19%	1.31%

Dividends

Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. Independent Bank pays an annual dividend of $2.56 per share and has a dividend yield of 3.1%. Landmark Bancorp pays out 25.5% of its earnings in the form of a dividend. Independent Bank pays out 46.2% 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. Landmark Bancorp has increased its dividend for 6 consecutive years and Independent Bank has increased its dividend for 15 consecutive years. Independent Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Landmark Bancorp has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares Landmark 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
Landmark Bancorp	$95.97 million	2.03	$18.77 million	$3.29	9.69
Independent Bank	$1.17 billion	3.33	$205.12 million	$5.54	14.84

Independent Bank has higher revenue and earnings than Landmark Bancorp. Landmark 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Landmark Bancorp and Independent Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landmark Bancorp	0	1	1	0	2.50
Independent Bank	1	1	4	1	2.71

Independent Bank has a consensus target price of $91.86, indicating a potential upside of 11.69%. Given Independent Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Independent Bank is more favorable than Landmark Bancorp.

Summary

Independent Bank beats Landmark Bancorp on 14 of the 18 factors compared between the two stocks.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.

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.