Independent banking group (NASDAQ:IBTX – Get a rating) and Ameris Bancorp (NASDAQ: ABCB – Get a rating) are both mid-cap financials, but which business is the best performer? We’ll compare the two companies based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation, and analyst recommendations.
Risk and Volatility
Independent Bank Group has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Ameris Bancorp has a beta of 1.13, indicating that its stock price is stock is 13% more volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Independent Bank Group and Ameris Bancorp.
|Net margins||Return on equity||return on assets|
|Independent banking group||33.81%||8.54%||1.18%|
Valuation and benefits
This table compares revenue, earnings per share (EPS), and valuation of Independent Bank Group and Ameris Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Independent banking group||$650.08 million||4.72||$224.75 million||$5.00||14.52|
|Ameris Bancorp||$1.07 billion||2.99||$376.91 million||$4.79||9.60|
Ameris Bancorp has higher revenue and profit than Independent Bank Group. Ameris Bancorp trades at a lower price-to-earnings ratio than Independent Bank Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Independent Bank Group and Ameris Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Independent banking group||0||1||1||0||2.50|
Independent Bank Group currently has a consensus price target of $85.00, indicating a potential upside of 17.06%. Ameris Bancorp has a consensus price target of $57.00, indicating a potential upside of 23.99%. Given Ameris Bancorp’s possible higher upside, analysts clearly believe that Ameris Bancorp is more favorable than Independent Bank Group.
Insider and Institutional Ownership
73.9% of Groupe Banque Indépendante shares are held by institutional investors. By comparison, 88.2% of Ameris Bancorp’s shares are held by institutional investors. 3.3% of Independent Bank Group shares are held by insiders of the company. By comparison, 5.5% of Ameris Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
The Independent Bank Group pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. Ameris Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Independent Bank Group pays 30.4% of its profits as a dividend. Ameris Bancorp pays 12.5% 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 Group has increased its dividend for 5 consecutive years. Independent Bank Group is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Ameris Bancorp beats Independent Bank Group on 8 of 15 factors compared between the two stocks.
Independent Banking Group Company Profile (Get a rating)
Independent Bank Group, Inc. operates as a bank holding company for Independent Bank which provides various commercial banking products and services to businesses, professionals and individuals in the United States. It accepts various deposit products, including checking and savings accounts, demand deposits, money market accounts, and certificates of deposit. The company also offers commercial real estate loans; loans for commercial construction, land and land development; residential real estate loans; single-family interim construction loans; commercial loans including SBA-backed loans, business term loans, equipment lease financing, lines of credit, and energy-related loans; agricultural loans for farmers and herders; consumer installment loans including loans to purchase cars, boats and other recreational vehicles; and residential mortgages, as well as mortgages for the purchase of warehouses. Additionally, it offers debit cards, online and mobile banking, e-statements, mail banking, and direct deposit services; and accounting and business management services, including business audit analysis, business savings and cash management services. As of December 31, 2021, the company operated 93 full-service branches. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.
Ameris Bancorp Company Profile (Get a rating)
Ameris Bancorp operates as a bank holding company for Ameris Bank which provides a range of banking services to retail and commercial customers primarily in Georgia, Alabama, Florida, North Carolina and South Carolina. The Company operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Loan Division, SBA Division and Premium Finance Division. It offers commercial and retail checks, interest-bearing regular savings, money market, individual retirement, and certificates of deposit accounts. The company also offers commercial real estate, residential real estate, agricultural, commercial and industrial loans; consumer loans, including auto loans, home improvement loans, and home equity loans, as well as loans secured by savings accounts and small unsecured personal lines of credit. In addition, it originates, administers and services commercial insurance premium loans and small business administration loans. The company operates 165 full-service national banking offices and 35 mortgage and loan origination offices. Ameris Bancorp was founded in 1971 and is based in Atlanta, Georgia.
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