Critical Comparison: Isabella Bank (ISBA) vs. Its Rivals

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Isabella Bank and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Isabella Bank	0	2	1	0	2.33
Isabella Bank Competitors	30	173	217	26	2.54

Isabella Bank currently has a consensus target price of $38.50, suggesting a potential downside of 24.27%. As a group, “State Commercial Banks – Fed Reserve System” companies have a potential upside of 8.49%. Given Isabella Bank’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Isabella Bank has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

72.2% of shares of all “State Commercial Banks – Fed Reserve System” companies are held by institutional investors. 9.7% of Isabella Bank shares are held by company insiders. Comparatively, 6.7% of shares of all “State Commercial Banks – Fed Reserve System” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

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

Profitability

This table compares Isabella Bank and its competitors’ 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%

Dividends

Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. 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 2.2% and pay out 67.3% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Isabella Bank and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Isabella Bank	$72.85 million	$13.89 million	20.67
Isabella Bank Competitors	$647.02 million	$95.99 million	40.24

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

Summary

Isabella Bank competitors 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.