Contrasting Isabella Bank (OTCMKTS:ISBA) & Ameris Bancorp (NASDAQ:ABCB)

Ameris Bancorp (NASDAQ:ABCB) and Isabella Bank (OTCMKTS:ISBA) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares Ameris Bancorp 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
Ameris Bancorp	$1.13 billion	4.50	$358.68 million	$5.68	13.01
Isabella Bank	$70.49 million	3.55	$13.89 million	$2.19	15.53

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

Profitability

This table compares Ameris Bancorp and Isabella Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameris Bancorp	21.46%	9.57%	1.32%
Isabella Bank	13.28%	7.34%	0.73%

Insider & Institutional Ownership

91.6% of Ameris Bancorp shares are owned by institutional investors. 5.5% of Ameris Bancorp shares are owned by insiders. Comparatively, 9.7% of Isabella Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ameris Bancorp has a beta of 0.96, meaning that its share price is 4% 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

Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Ameris Bancorp pays out 14.1% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ameris Bancorp and Isabella Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameris Bancorp	0	1	6	0	2.86
Isabella Bank	0	1	0	0	2.00

Ameris Bancorp presently has a consensus price target of $72.14, suggesting a potential downside of 2.35%. Isabella Bank has a consensus price target of $34.00, suggesting a potential upside of 0.00%. Given Isabella Bank’s higher possible upside, analysts plainly believe Isabella Bank is more favorable than Ameris Bancorp.

Summary

Ameris Bancorp beats Isabella Bank on 12 of the 16 factors compared between the two stocks.

About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.

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.