Head-To-Head Survey: Isabella Bank (OTCMKTS:ISBA) & Atlantic Union Bankshares (NASDAQ:AUB)

Atlantic Union Bankshares (NASDAQ:AUB) and Isabella Bank (OTCMKTS:ISBA) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Insider & Institutional Ownership

78.6% of Atlantic Union Bankshares shares are owned by institutional investors. 0.9% of Atlantic Union Bankshares shares are owned by company insiders. Comparatively, 9.7% of Isabella Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Atlantic Union Bankshares and Isabella Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic Union Bankshares	$1.05 billion	4.37	$209.13 million	$2.06	15.65
Isabella Bank	$68.90 million	3.21	$13.89 million	$2.19	13.69

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

Profitability

This table compares Atlantic Union Bankshares and Isabella Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic Union Bankshares	15.53%	8.50%	1.06%
Isabella Bank	13.28%	7.34%	0.73%

Dividends

Atlantic Union Bankshares pays an annual dividend of $1.36 per share and has a dividend yield of 4.2%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.7%. Atlantic Union Bankshares pays out 66.0% 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. Atlantic Union Bankshares has increased its dividend for 14 consecutive years. Atlantic Union Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Atlantic Union Bankshares and Isabella Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic Union Bankshares	0	2	3	1	2.83
Isabella Bank	0	1	0	0	2.00

Atlantic Union Bankshares presently has a consensus target price of $38.17, suggesting a potential upside of 18.38%. Isabella Bank has a consensus target price of $34.00, suggesting a potential upside of 13.41%. Given Atlantic Union Bankshares’ stronger consensus rating and higher probable upside, research analysts plainly believe Atlantic Union Bankshares is more favorable than Isabella Bank.

Volatility and Risk

Atlantic Union Bankshares has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Isabella Bank has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Summary

Atlantic Union Bankshares beats Isabella Bank on 14 of the 18 factors compared between the two stocks.

About Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the bank holding company for Atlantic Union Bank that provides banking and related financial products and services to consumers and businesses in the United States. It operates in two segments, Wholesale Banking and Consumer Banking. The company accepts various deposit products, including checking, savings, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes, as well as debit and credit cards. In addition, it provides treasury management and capital market, wealth management, private banking, trust, financial and retirement planning, brokerage, investment management, equipment finance, mortgage banking, and insurance products and services. The company offers products and services through full-service branches and ATMs, as well as through its mobile and internet banking. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Glen Allen, Virginia.

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.