Head-To-Head Survey: Surrey Bancorp (OTCMKTS:SRYB) and International Bancshares (NASDAQ:IBOC)

Dividends

International Bancshares pays an annual dividend of $1.40 per share and has a dividend yield of 2.1%. Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. International Bancshares pays out 21.3% of its earnings in the form of a dividend. Surrey Bancorp pays out 31.6% 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.

Profitability

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

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

Institutional and Insider Ownership

65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 3.7% of Surrey Bancorp shares are owned by institutional investors. 13.9% of International Bancshares shares are owned by company insiders. Comparatively, 33.7% of Surrey Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$833.64 million	4.90	$411.77 million	$6.57	9.99
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99

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

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

Summary

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

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.

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.