Reviewing 1st Colonial Bancorp (OTCMKTS:FCOB) and Independent Bank (NASDAQ:INDB)

1st Colonial Bancorp (OTCMKTS:FCOB) and Independent Bank (NASDAQ:INDB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

1st Colonial Bancorp has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares 1st Colonial Bancorp and Independent Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$49.61 million	2.04	$7.30 million	$1.48	13.51
Independent Bank	$1.17 billion	3.37	$205.12 million	$5.04	16.19

Independent Bank has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial 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.

Insider & Institutional Ownership

13.4% of 1st Colonial Bancorp shares are owned by institutional investors. Comparatively, 83.4% of Independent Bank shares are owned by institutional investors. 1.6% of Independent Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares 1st Colonial Bancorp and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	14.71%	10.87%	1.04%
Independent Bank	19.14%	8.66%	1.26%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for 1st Colonial Bancorp and Independent Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	0.00
Independent Bank	1	2	4	1	2.63

Independent Bank has a consensus target price of $90.71, indicating a potential upside of 11.16%. Given Independent Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Independent Bank is more favorable than 1st Colonial Bancorp.

Summary

Independent Bank beats 1st Colonial Bancorp on 14 of the 15 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

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.