Mercantile Bank (MBWM) Competitors

Mercantile Bank (NASDAQ:MBWM) and Independent Bank (NASDAQ:IBCP) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, media sentiment, profitability, analyst recommendations, community ranking and risk.

Does the media refer more to MBWM or IBCP?

In the previous week, Mercantile Bank had 6 more articles in the media than Independent Bank. MarketBeat recorded 7 mentions for Mercantile Bank and 1 mentions for Independent Bank. Mercantile Bank's average media sentiment score of 0.87 beat Independent Bank's score of 0.03 indicating that Mercantile Bank is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Mercantile Bank	4 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Independent Bank	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do insiders & institutionals believe in MBWM or IBCP?

58.6% of Mercantile Bank shares are held by institutional investors. Comparatively, 79.4% of Independent Bank shares are held by institutional investors. 3.1% of Mercantile Bank shares are held by insiders. Comparatively, 5.5% of Independent Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Is MBWM or IBCP more profitable?

Mercantile Bank has a net margin of 23.99% compared to Independent Bank's net margin of 21.11%. Independent Bank's return on equity of 16.90% beat Mercantile Bank's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Mercantile Bank	23.99%	15.52%	1.50%
Independent Bank	21.11%	16.90%	1.31%

Does the MarketBeat Community believe in MBWM or IBCP?

Mercantile Bank received 85 more outperform votes than Independent Bank when rated by MarketBeat users. Likewise, 58.82% of users gave Mercantile Bank an outperform vote while only 54.74% of users gave Independent Bank an outperform vote.

Company	Underperform	Outperform
Mercantile Bank	Outperform Votes 310 58.82%	Underperform Votes 217 41.18%
Independent Bank	Outperform Votes 225 54.74%	Underperform Votes 186 45.26%

Is MBWM or IBCP a better dividend stock?

Mercantile Bank pays an annual dividend of $1.44 per share and has a dividend yield of 3.4%. Independent Bank pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. Mercantile Bank pays out 27.9% of its earnings in the form of a dividend. Independent Bank pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mercantile Bank has raised its dividend for 13 consecutive years. Mercantile Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has better earnings and valuation, MBWM or IBCP?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercantile Bank	$230.14M	2.93	$82.22M	$5.16	8.10
Independent Bank	$207.12M	3.27	$59.07M	$2.94	11.01

Do analysts recommend MBWM or IBCP?

Mercantile Bank presently has a consensus price target of $52.00, indicating a potential upside of 24.46%. Independent Bank has a consensus price target of $32.17, indicating a potential downside of 0.60%. Given Mercantile Bank's stronger consensus rating and higher probable upside, analysts clearly believe Mercantile Bank is more favorable than Independent Bank.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercantile Bank	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.25
Independent Bank	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has more volatility & risk, MBWM or IBCP?

Mercantile Bank has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Summary

Mercantile Bank beats Independent Bank on 15 of the 21 factors compared between the two stocks.