Reviewing South State (SSB) and SVB Financial Group (SIVB)
South State (NASDAQ: SIVB) and SVB Financial Group (NASDAQ:SIVB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Earnings and Valuation
This table compares South State and SVB Financial Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|South State||$575.15 million||5.46||$87.55 million||$4.85||17.59|
|SVB Financial Group||$2.02 billion||8.62||$490.50 million||$9.91||33.06|
Volatility and Risk
South State has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, SVB Financial Group has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.
Institutional and Insider Ownership
73.9% of South State shares are owned by institutional investors. Comparatively, 88.8% of SVB Financial Group shares are owned by institutional investors. 2.0% of South State shares are owned by company insiders. Comparatively, 0.7% of SVB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares South State and SVB Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SVB Financial Group||29.56%||16.47%||1.39%|
This is a breakdown of recent ratings and recommmendations for South State and SVB Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SVB Financial Group||0||3||14||0||2.82|
South State currently has a consensus price target of $92.25, suggesting a potential upside of 8.15%. SVB Financial Group has a consensus price target of $354.60, suggesting a potential upside of 8.22%. Given SVB Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe SVB Financial Group is more favorable than South State.
South State pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. SVB Financial Group does not pay a dividend. South State pays out 28.9% of its earnings in the form of a dividend. South State has raised its dividend for 3 consecutive years.
SVB Financial Group beats South State on 14 of the 17 factors compared between the two stocks.
About South State
South State Corporation operates as the bank holding company for South State Bank that provides a range of retail and commercial banking services, mortgage lending services, trust and wealth management, and consumer finance loans. The company accepts demand deposits, savings deposits, interest-bearing transaction accounts, certificates of deposit, and other time deposits; and offers lending and credit card, ATM processing, and wealth management and trust services. It serves customers through 181 financial centers in 29 South Carolina counties, 9 North Carolina counties, 19 Georgia counties, and 4 Virginia counties. The company was formerly known as First Financial Holdings, Inc. and changed its name to South State Corporation in July 2013. South State Corporation was founded in 1933 and is headquartered in Columbia, South Carolina.
About SVB Financial Group
SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. Its Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit card account analysis, and disbursement, as well as online and mobile banking services. This segment also provides various loan and credit facilities; foreign exchange services; export, import, and standby letter of credit; investment services and solutions; investment advisory service; vineyard development loans; and equity valuation services, as well as invests in debt funds. The company's SVB Private Bank segment offers private banking services, such as mortgages, home equity and capital call lines of credit, restricted stock purchase loans, and other secured and unsecured lending products. Its SVB Capital segment provides venture capital investment services that manage funds on behalf of third party limited partners. The company also offers asset and private wealth management, and private equity investment services. It operates through 29 offices in the United States; and offices in the United Kingdom, Hong Kong, China, Israel, and India. The company was founded in 1983 and is headquartered in Santa Clara, California.
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