Bank of South Carolina (NASDAQ:BKSC) & Isabella Bank (OTCMKTS:ISBA) Head-To-Head Survey

Bank of South Carolina (NASDAQ:BKSC) and Isabella Bank (OTCMKTS:ISBA) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Bank of South Carolina and Isabella Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of South Carolina	23.42%	13.59%	1.14%
Isabella Bank	13.28%	7.34%	0.73%

Risk and Volatility

Bank of South Carolina has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Isabella Bank has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Dividends

Bank of South Carolina pays an annual dividend of $0.84 per share and has a dividend yield of 5.5%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.4%. Bank of South Carolina pays out 63.2% of its earnings in the form of a dividend. Isabella Bank pays out 51.1% 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.

Earnings & Valuation

This table compares Bank of South Carolina and Isabella Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of South Carolina	$21.16 million	3.93	$6.75 million	$1.33	11.53
Isabella Bank	$70.49 million	3.39	$13.89 million	$2.19	14.84

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

Institutional and Insider Ownership

0.2% of Bank of South Carolina shares are owned by institutional investors. 29.8% of Bank of South Carolina shares are owned by company insiders. Comparatively, 1.5% of Isabella Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bank of South Carolina and Isabella Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of South Carolina	0	0	0	0	0.00
Isabella Bank	0	1	0	0	2.00

Isabella Bank has a consensus price target of $34.00, suggesting a potential upside of 4.62%. Given Isabella Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Isabella Bank is more favorable than Bank of South Carolina.

Summary

Bank of South Carolina beats Isabella Bank on 8 of the 15 factors compared between the two stocks.

About Bank of South Carolina

Bank of South Carolina Corporation operates as a bank holding company for The Bank of South Carolina that provides a range of financial products and services primarily in Charleston, Berkeley, and Dorchester counties of South Carolina. Its deposits include non-interest-bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit. The company offers secured and unsecured commercial loans, commercial real estate construction loans, consumer construction loans, home equity lines of credit, and mortgage originations, as well as paycheck protection program loans. It operates five banking house locations. The company was founded in 1986 and is headquartered in Charleston, South Carolina.

About Isabella Bank

Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides various banking products and services to businesses, institutions, and individuals and their families. Its deposit products include checking accounts, savings accounts, certificates of deposit, direct deposits, and money market accounts. The company's loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. It also offers cash management, mobile and internet banking, electronic bill pay, automated teller machines, trust and investment, estate planning, and safe deposit box rental services; and insurance products. The company operated banking offices in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.