Bank of SC (NASDAQ:BKSC) and Macatawa Bank (NASDAQ:MCBC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Insider and Institutional Ownership
11.9% of Bank of SC shares are held by institutional investors. Comparatively, 31.5% of Macatawa Bank shares are held by institutional investors. 27.9% of Bank of SC shares are held by company insiders. Comparatively, 8.6% of Macatawa Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Bank of SC pays an annual dividend of $0.64 per share and has a dividend yield of 3.3%. Macatawa Bank pays an annual dividend of $0.28 per share and has a dividend yield of 2.8%. Macatawa Bank pays out 35.9% of its earnings in the form of a dividend. Bank of SC has raised its dividend for 7 consecutive years and Macatawa Bank has raised its dividend for 3 consecutive years. Bank of SC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Bank of SC has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Macatawa Bank has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
This table compares Bank of SC and Macatawa Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of SC||34.20%||15.61%||1.63%|
This is a breakdown of recent ratings and price targets for Bank of SC and Macatawa Bank, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of SC||0||0||0||0||N/A|
Macatawa Bank has a consensus price target of $24.50, indicating a potential upside of 141.86%. Given Macatawa Bank’s higher probable upside, analysts clearly believe Macatawa Bank is more favorable than Bank of SC.
Earnings & Valuation
This table compares Bank of SC and Macatawa Bank’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank of SC||$20.13 million||5.25||$6.92 million||N/A||N/A|
|Macatawa Bank||$86.54 million||3.99||$26.37 million||$0.78||12.99|
Macatawa Bank has higher revenue and earnings than Bank of SC.
Bank of SC beats Macatawa Bank on 9 of the 15 factors compared between the two stocks.
About Bank of SC
Bank of South Carolina Corporation operates as the holding company for The Bank of South Carolina that provides commercial banking services to individuals, professionals, and small and middle market businesses in South Carolina. The company offers a range of deposit products, including non-interest bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit. It also provides secured and unsecured loans; commercial real estate loans; consumer loans, including construction, real estate, HELOCs, and mortgage; and home equity loans and lines of credit. It operates through Charleston, Summerville, and Mount Pleasant banking house locations in South Carolina. Bank of South Carolina Corporation was founded in 1986 and is headquartered in Charleston, South Carolina.
About Macatawa Bank
Macatawa Bank Corporation operates as the bank holding company for Macatawa Bank that provides commercial and consumer banking and trust services. The company accepts various deposits, such as checking accounts, savings accounts, time deposits, regular and money market savings accounts, certificates of deposit, and demand deposits. Its loan products include commercial and industrial loans comprising loans to finance operations and equipment; commercial real estate loans, which consist of construction and development, and multi-family and other non-residential real estate loans; retail loans, such as residential mortgage loans; and consumer loans, including automobile loans, home equity lines of credit and installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. The company also offers ATM and debit card processing, cash management, and trust and brokerage services. It serves individuals, businesses, associations, churches, nonprofit organizations, financial institutions, and government authorities through 26 branch offices, as well as a lending and operation service facility in Kent County, Ottawa County, and northern Allegan County, Michigan. Macatawa Bank Corporation was founded in 1997 and is headquartered in Holland, Michigan.
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