Flushing Financial (NASDAQ:FFIC – Get Free Report) and Independent Bank Group (NASDAQ:IBTX – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Risk & Volatility
Flushing Financial has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Independent Bank Group has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Flushing Financial and Independent Bank Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flushing Financial | 0 | 3 | 1 | 0 | 2.25 |
| Independent Bank Group | 0 | 2 | 4 | 0 | 2.67 |
Dividends
Flushing Financial pays an annual dividend of $0.88 per share and has a dividend yield of 6.0%. Independent Bank Group pays an annual dividend of $1.52 per share and has a dividend yield of 2.5%. Flushing Financial pays out 101.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independent Bank Group pays out -14.5% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Flushing Financial and Independent Bank Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flushing Financial | $198.01 million | 2.50 | $28.66 million | $0.87 | 16.91 |
| Independent Bank Group | $471.74 million | 5.33 | $43.20 million | ($10.46) | -5.80 |
Independent Bank Group has higher revenue and earnings than Flushing Financial. Independent Bank Group is trading at a lower price-to-earnings ratio than Flushing Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Flushing Financial and Independent Bank Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flushing Financial | 5.48% | 3.75% | 0.28% |
| Independent Bank Group | -43.45% | 4.49% | 0.52% |
Institutional and Insider Ownership
67.1% of Flushing Financial shares are held by institutional investors. Comparatively, 77.9% of Independent Bank Group shares are held by institutional investors. 6.3% of Flushing Financial shares are held by insiders. Comparatively, 3.5% of Independent Bank Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Independent Bank Group beats Flushing Financial on 10 of the 16 factors compared between the two stocks.
About Flushing Financial
Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. It offers various deposit products, including checking and savings accounts, money market accounts, non-interest bearing demand accounts, NOW accounts, and certificates of deposit. The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. It operates full-service banking offices in Queens, Nassau, Suffolk, Kings, and New York counties, New York; and an internet branch under the iGObanking and BankPurely brands. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.
About Independent Bank Group
Independent Bank Group, Inc., through its subsidiary, Independent Bank 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 provides commercial real estate loans; commercial construction, land, and land development loans; residential real estate loans; single-family interim construction loans; commercial loans, such as SBA guaranteed loans, business term loans, lines of credit, and energy related loans; agricultural loans for farmers and ranchers; consumer installment loans comprising loans to purchase cars, boats, and other recreational vehicles; and residential mortgages, as well as mortgage warehouse purchase loans. In addition, it offers debit and credit cards, online and mobile banking, estatement, bank-by-mail, and direct deposit services; wealth management services; and business accounts and management services consisting of analyzed business checking, business savings, and treasury management services. The company was incorporated in 2002 and is headquartered in McKinney, Texas.
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