Citizens (NASDAQ:CIZN – Get Free Report) and Isabella Bank (OTCMKTS:ISBA – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Volatility and Risk
Citizens has a beta of -0.02, meaning that its share price is 102% 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.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Citizens and Isabella Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citizens | 0 | 0 | 1 | 0 | 3.00 |
| Isabella Bank | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Citizens and Isabella Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citizens | 7.00% | 11.28% | 0.37% |
| Isabella Bank | 13.28% | 7.34% | 0.73% |
Valuation and Earnings
This table compares Citizens and Isabella Bank”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citizens | $40.95 million | 0.93 | $5.49 million | $0.95 | 7.13 |
| Isabella Bank | $70.49 million | 3.66 | $13.89 million | $2.19 | 16.00 |
Isabella Bank has higher revenue and earnings than Citizens. Citizens 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
9.7% of Citizens shares are held by institutional investors. 8.9% of Citizens shares are held by company insiders. Comparatively, 9.7% of Isabella Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
Citizens pays an annual dividend of $0.08 per share and has a dividend yield of 1.2%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Citizens pays out 8.4% 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. Citizens has raised its dividend for 1 consecutive years.
Summary
Isabella Bank beats Citizens on 10 of the 17 factors compared between the two stocks.
About Citizens
Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various commercial and personal banking products and services. It offers demand deposits; and savings and time deposit accounts. The company also provides secured and unsecured loans; mortgage loans; single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans; commercial, industrial, and agricultural production loans; and consumer loans, as well as issues letters of credit. In addition, it offers personal and corporate trust services; credit life and title insurance; and online and mobile banking services. The company was founded in 1908 and is headquartered in Philadelphia, Mississippi.
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.
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