Chemung Financial (NASDAQ:CHMG) and Southside Bancshares (NASDAQ:SBSI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Chemung Financial and Southside Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemung Financial 0 1 1 0 2.50
Southside Bancshares 0 1 0 0 2.00

Chemung Financial currently has a consensus target price of $49.00, suggesting a potential upside of 16.95%. Southside Bancshares has a consensus target price of $37.00, suggesting a potential upside of 13.88%. Given Chemung Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Chemung Financial is more favorable than Southside Bancshares.

Institutional & Insider Ownership

33.7% of Chemung Financial shares are held by institutional investors. Comparatively, 47.1% of Southside Bancshares shares are held by institutional investors. 20.6% of Chemung Financial shares are held by insiders. Comparatively, 6.1% of Southside Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Chemung Financial pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. Southside Bancshares pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Southside Bancshares pays out 63.5% of its earnings in the form of a dividend. Southside Bancshares has raised its dividend for 20 consecutive years. Southside Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Chemung Financial has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Chemung Financial and Southside Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemung Financial 10.07% 7.48% 0.66%
Southside Bancshares 24.55% 9.07% 1.04%

Valuation & Earnings

This table compares Chemung Financial and Southside Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemung Financial $80.55 million 2.50 $7.43 million N/A N/A
Southside Bancshares $224.95 million 5.07 $54.31 million $1.89 17.19

Southside Bancshares has higher revenue and earnings than Chemung Financial.

Summary

Southside Bancshares beats Chemung Financial on 10 of the 16 factors compared between the two stocks.

Chemung Financial Company Profile

Chemung Financial Corporation operates as the holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. It offers demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. The company also provides commercial and agricultural loans primarily consisting of loans to small to mid-sized businesses; commercial mortgage loans; residential mortgage loans; and consumer loans, including home equity lines of credit and home equity loans, as well as letters of credit. In addition, it offers wealth management services comprising services as executor and trustee under wills and agreements; guardian, custodian, and trustee services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts; and various investment, pension, estate planning, and employee benefit administrative services. Further, the company provides mutual funds, securities and insurance brokerage, tax preparation, interest rate swaps, and other services. It operates through 34 branch offices located in 12 counties in New York and Bradford County in Pennsylvania. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

Southside Bancshares Company Profile

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposit. The company's loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other installment loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers trust services consisting of investment management, administration, and advisory services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. The company operates through 60 branches and 40 motor bank facilities located in Tyler, Longview, Lindale, Gresham, Jacksonville, Bullard, Chandler, Hawkins, Palestine, Gun Barrel City, Whitehouse, Fort Worth, Arlington, Cleburne, Euless, Flower Mound, Frisco, Granbury, Grapevine, Irving, Watauga, Weatherford, Austin, Diboll, Lufkin, Nacogdoches, Cleveland, Splendora, Jasper, Pineland, Hemphill, and San Augustine; and a network of approximately 84 automated teller machines, as well as trust services, and/or loan production or other financial services offices. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

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