Head-To-Head Comparison: Surrey Bancorp (OTCMKTS:SRYB) versus International Bancshares (NASDAQ:IBOC)

Profitability

This table compares Surrey Bancorp and International Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrey Bancorp	37.97%	N/A	N/A
International Bancshares	38.65%	15.62%	2.59%

Dividends

Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.2%. Surrey Bancorp pays out 31.6% of its earnings in the form of a dividend. International Bancshares pays out 21.3% 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. International Bancshares has increased its dividend for 16 consecutive years.

Valuation and Earnings

This table compares Surrey Bancorp and International Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99
International Bancshares	$833.64 million	4.73	$411.77 million	$6.57	9.66

International Bancshares has higher revenue and earnings than Surrey Bancorp. International Bancshares is trading at a lower price-to-earnings ratio than Surrey Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Surrey Bancorp has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

3.7% of Surrey Bancorp shares are owned by institutional investors. Comparatively, 65.9% of International Bancshares shares are owned by institutional investors. 33.7% of Surrey Bancorp shares are owned by company insiders. Comparatively, 13.9% of International Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

International Bancshares beats Surrey Bancorp on 11 of the 14 factors compared between the two stocks.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.