Isabella Bank (ISBA) & The Competition Critical Comparison

Isabella Bank (NASDAQ:ISBA) is one of 20 public companies in the “State Commercial Banks – Fed Reserve System” industry, but how does it contrast to its peers? We will compare Isabella Bank to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, risk, profitability and institutional ownership.

Dividends

Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 2.3%. Isabella Bank pays out 45.5% of its earnings in the form of a dividend. As a group, “State Commercial Banks – Fed Reserve System” companies pay a dividend yield of 2.3% and pay out 67.3% of their earnings in the form of a dividend. Isabella Bank is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

72.2% of shares of all “State Commercial Banks – Fed Reserve System” companies are held by institutional investors. 1.5% of Isabella Bank shares are held by insiders. Comparatively, 6.7% of shares of all “State Commercial Banks – Fed Reserve System” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Isabella Bank has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Isabella Bank’s peers have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Isabella Bank and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Isabella Bank	0	2	1	0	2.33
Isabella Bank Competitors	29	167	197	19	2.50

Isabella Bank presently has a consensus target price of $38.50, indicating a potential downside of 20.78%. As a group, “State Commercial Banks – Fed Reserve System” companies have a potential upside of 12.55%. Given Isabella Bank’s peers stronger consensus rating and higher possible upside, analysts clearly believe Isabella Bank has less favorable growth aspects than its peers.

Profitability

This table compares Isabella Bank and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Isabella Bank	16.65%	8.01%	0.81%
Isabella Bank Competitors	7.23%	6.94%	0.79%

Earnings and Valuation

This table compares Isabella Bank and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Isabella Bank	$104.55 million	$13.89 million	19.76
Isabella Bank Competitors	$723.51 million	$95.99 million	39.72

Isabella Bank’s peers have higher revenue and earnings than Isabella Bank. Isabella Bank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Isabella Bank peers beat Isabella Bank on 10 of the 15 factors compared.

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 group life, health, accident, disability, and other insurance products, as well as other employee benefit programs. As of December 31, 2021, the company operated 30 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.