Direct comparison: SouthState (NASDAQ: SSB) and Independent Bank (NASDAQ: IBCP)


SouthState (NASDAQ:SSB – Get Rating) and Independent Bank (NASDAQ:IBCP – Get Rating) are both finance companies, but which business is superior? We’ll compare the two companies based on their risk strength, institutional ownership, earnings, profitability, dividends, valuation, and analyst recommendations.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of SouthState and Independent Bank.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
southern state $1.44 billion 3.71 $475.54 million $6.71 11.59
Independent bank $214.72 million 2.09 $62.90 million $2.87 7.37

SouthState has higher revenues and profits than Independent Bank. Independent Bank trades at a lower price-to-earnings ratio than SouthState, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

SouthState has a beta of 0.83, which means its stock price is 17% less volatile than the S&P 500. Comparatively, Independent Bank has a beta of 1, which means its stock price has a profile volatility similar to that of the S&P 500.

Institutional and insider ownership

84.3% of SouthState shares are held by institutional investors. Comparatively, 81.6% of shares in Independent Bank are held by institutional investors. 1.9% of SouthState stock is held by insiders of the company. By comparison, 5.2% of Independent Bank’s stock is held by company insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.

Analyst Notes

This is a summary of current recommendations and price targets for SouthState and Independent Bank, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
southern state 0 1 3 0 2.75
Independent bank 0 1 0 0 2.00

SouthState currently has a consensus target price of $82.43, suggesting a potential upside of 5.99%. Given SouthState’s stronger consensus rating and higher likely upside, equity research analysts clearly believe that SouthState is more favorable than Independent Bank.

Dividends

SouthState pays an annual dividend of $1.96 per share and has a dividend yield of 2.5%. Independent Bank pays an annual dividend of $0.88 per share and has a dividend yield of 4.2%. SouthState pays 29.2% of its profits as a dividend. Independent Bank pays 30.7% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. SouthState has increased its dividend for 10 consecutive years and Independent Bank has increased its dividend for 8 consecutive years.

Profitability

This table compares the net margins, return on equity, and return on assets of SouthState and Independent Bank.

Net margins Return on equity return on assets
southern state 33.04% 11.27% 1.32%
Independent bank 29.29% 15.90% 1.38%

Summary

SouthState beats Independent Bank on 12 out of 17 factors compared between the two stocks.

About Southern State (Get a rating)

SouthState Corporation operates as a bank holding company for SouthState Bank, a National Association which provides a range of personal and business banking services and products. It accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposit, money market accounts, and other term deposits. The company also offers commercial real estate loans, residential real estate loans, commercial and industrial loans, and consumer loans, including auto, boat and personal installment loans. In addition, it provides debit cards, mobile and money transfer products, as well as cash management services including merchant, automated clearing house, safe deposit box, remote deposit capture and cash management services. other treasury services. In addition, the Company offers safe deposit boxes, money orders, electronic transfers, brokerage services and alternative investment products, including annuities, mutual funds and trust and investment management services. assets ; and credit cards, letters of credit and home equity lines of credit. As of December 31, 2021, it served customers at 281 branches in Florida, South Carolina, Alabama, Georgia, North Carolina and Virginia. SouthState Corporation also serves its customers through online, mobile and telephone banking platforms. The company was formerly known as First Financial Holdings, Inc. and changed its name to SouthState Corporation in July 2013. SouthState Corporation was founded in 1933 and is headquartered in Winter Haven, Florida.

About the Independent Bank (Get a rating)

Independent Bank Corporation operates as a bank holding company for Independent Bank which provides various retail and corporate banking services. The company offers checking and savings accounts, business loans, direct and indirect consumer financing, mortgages and safe deposit services, as well as automated teller machines and internet and mobile banking. It also provides title insurance, insurance brokerage and investment services. The company offers its services through approximately 59 branches, two drive-thru facilities, and seven loan origination offices in Michigan; and two loan origination offices in Ohio. Independent Bank Corporation was founded in 1864 and is based in Grand Rapids, Michigan.



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Shawanda H. Saldana