Independent Bank (NASDAQ:IBCP) versus First Western Financial (NASDAQ:MYFW) Head-To-Head Comparison

First Western Financial (NASDAQ:MYFW) and Independent Bank (NASDAQ:IBCP) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares First Western Financial 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
First Western Financial	$88.93 million	2.29	$5.22 million	$0.62	34.02
Independent Bank	$290.35 million	2.73	$59.07 million	$2.94	12.91

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

Analyst Ratings

This is a breakdown of current recommendations for First Western Financial and Independent Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Western Financial	0	1	2	0	2.67
Independent Bank	0	4	0	0	2.00

First Western Financial presently has a consensus target price of $23.83, indicating a potential upside of 13.01%. Independent Bank has a consensus target price of $34.83, indicating a potential downside of 8.26%. Given First Western Financial’s stronger consensus rating and higher probable upside, research analysts clearly believe First Western Financial is more favorable than Independent Bank.

Volatility & Risk

First Western Financial has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Insider and Institutional Ownership

60.3% of First Western Financial shares are held by institutional investors. Comparatively, 79.4% of Independent Bank shares are held by institutional investors. 17.9% of First Western Financial shares are held by company insiders. Comparatively, 5.5% of Independent Bank shares are held by company 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.

Profitability

This table compares First Western Financial and Independent Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Western Financial	3.33%	2.44%	0.20%
Independent Bank	19.93%	15.26%	1.24%

Summary

Independent Bank beats First Western Financial on 9 of the 14 factors compared between the two stocks.

About First Western Financial

First Western Financial, Inc., a financial holding company, provides wealth advisory, private baking, personal trust, investment management, mortgage lending, and institutional asset management services. The company operates through two segments: Wealth Management and Mortgage. The Wealth Management segment provides deposit, loan, life insurance, and trust and investment management advisory products and services. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. It serves entrepreneurs, professionals, high net worth individuals or families, and business and philanthropic organizations. First Western Financial, Inc. was incorporated in 2002 and is headquartered in Denver, Colorado.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company also provides title insurance services and investment services, as well as automatic teller machines, and internet and mobile banking services. In addition, it operates through branches, drive-thru facilities, and loan production offices. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.