Critical Review: Bank of South Carolina (NASDAQ:BKSC) & Signature Bank (NASDAQ:SBNY)

Dividends

Bank of South Carolina pays an annual dividend of $0.92 per share and has a dividend yield of 5.8%. Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 102.9%. Bank of South Carolina pays out 69.2% of its earnings in the form of a dividend.

Risk and Volatility

Bank of South Carolina has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 11.76, meaning that its stock price is 1,076% more volatile than the S&P 500.

Profitability

This table compares Bank of South Carolina and Signature Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of South Carolina	23.42%	13.59%	1.14%
Signature Bank	N/A	N/A	N/A

Valuation and Earnings

This table compares Bank of South Carolina and Signature Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of South Carolina	$21.16 million	4.08	$6.75 million	$1.33	11.98
Signature Bank	$2.70 billion	0.02	$1.34 billion	N/A	N/A

Signature Bank has higher revenue and earnings than Bank of South Carolina.

Insider and Institutional Ownership

0.2% of Bank of South Carolina shares are held by institutional investors. Comparatively, 11.1% of Signature Bank shares are held by institutional investors. 29.8% of Bank of South Carolina shares are held by company insiders. Comparatively, 1.5% of Signature Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Signature Bank beats Bank of South Carolina on 6 of the 11 factors compared between the two stocks.

About Bank of South Carolina

Bank of South Carolina Corporation operates as a bank holding company for The Bank of South Carolina that provides a range of financial products and services primarily in Charleston, Berkeley, and Dorchester counties of South Carolina. Its deposits include non-interest-bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit. The company offers secured and unsecured commercial loans, commercial real estate construction loans, consumer construction loans, home equity lines of credit, and mortgage originations, as well as paycheck protection program loans. It operates five banking house locations. The company was founded in 1986 and is headquartered in Charleston, South Carolina.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.