Glen Burnie Bancorp (NASDAQ:GLBZ – Get Rating) and Independent Bank (NASDAQ:IBCP – Get Rating) are both small cap finance companies, but which is the best investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

2.6% of Glen Burnie Bancorp shares are held by institutional investors. Comparatively, 79.6% of shares in Independent Bank are held by institutional investors. 15.2% of the shares of Glen Burnie Bancorp are held by insiders of the company. By comparison, 5.2% of Independent Bank’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of Glen Burnie Bancorp and Independent Bank.

Net margins Return on equity return on assets
Glen Burnie Bancorp 15.48% 6.46% 0.49%
Independent bank 28.08% 15.18% 1.27%

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Glen Burnie Bancorp and Independent Bank.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Glen Burnie Bancorp $14.14 million 2.32 $2.52 million $0.75 3:31 p.m.
Independent bank $214.72 million 1.78 $62.90 million $2.71 6.70

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

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 3.5%. Independent Bank pays an annual dividend of $0.88 per share and has a dividend yield of 4.8%. Glen Burnie Bancorp pays 53.3% of its profits as a dividend. Independent Bank pays 32.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Independent Bank has increased its dividend for 8 consecutive years. Independent Bank is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and risk

Glen Burnie Bancorp has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. In comparison, Independent Bank has a beta of 1, indicating that its stock price has a volatility profile similar to that of the S&P 500.

Analyst Notes

This is a breakdown of recent ratings and recommendations for Glen Burnie Bancorp and Independent Bank, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Glen Burnie Bancorp 0 0 0 0 N / A
Independent bank 0 1 0 0 2.00

Independent Bank has a consensus target price of $20.00, indicating a potential upside of 10.13%. Given Independent Bank’s possible higher upside, analysts clearly think Independent Bank is more favorable than Glen Burnie Bancorp.

Summary

Independent Bank beats Glen Burnie Bancorp on 12 out of 15 factors compared between the two stocks.

About Glen Burnie Bancorp (Get a rating)

Glen Burnie Bancorp operates as a bank holding company for The Bank of Glen Burnie which provides commercial and retail banking services to individuals, associations, partnerships and corporations. The company accepts various deposits, including savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, and IRA and SEP accounts, as well as certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, secured and unsecured commercial loans, as well as consumer installment loans, such as indirect auto lending services; and first and second residential mortgages, home equity lines of credit and commercial mortgages. In addition, the Company offers ancillary products and services including safe deposit boxes, money orders, night deposits, automated clearing house transactions and automated teller machine (ATM) services, as well as electronic banking services including phone banking, online banking, bill payment, card check, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Additionally, it provides cash services, including wire transfer and ACH services, and debit cards. In addition, the Company is engaged in the business of acquiring, holding and disposing of real estate. It serves customers in northern Anne Arundel County and surrounding areas from its main office and branch office in Glen Burnie, Maryland; and branches in Odenton, Riviera Beach, Crownsville, Severn, Linthicum and Severna Park, Maryland. The company also has a remote ATM located in Pasadena, Maryland. Glen Burnie Bancorp was founded in 1949 and is based in Glen Burnie, Maryland.

About the Independent Bank (Get a rating)

Independent Bank LogoIndependent Bank Corporation operates as a bank holding company for Independent Bank which provides various retail and corporate banking services. The company offers checking and savings accounts, business loans, direct and indirect consumer financing, mortgages and safe deposit services, as well as automated teller machines and internet and mobile banking. It also provides title insurance, insurance brokerage and investment services. The company offers its services through approximately 59 branches, two drive-thru facilities, and seven loan origination offices in Michigan; and two loan origination offices in Ohio. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.



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