Head to Head Comparison: Intercorp Financial Services (NYSE:IFS) & Summit State Bank (NASDAQ:SSBI)

Summit State Bank (NASDAQ:SSBI) and Intercorp Financial Services (NYSE:IFS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares Summit State Bank and Intercorp Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit State Bank	7.83%	N/A	N/A
Intercorp Financial Services	18.00%	10.67%	1.18%

Volatility & Risk

Summit State Bank has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Intercorp Financial Services has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Summit State Bank and Intercorp Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit State Bank	0	0	0	0	0.00
Intercorp Financial Services	0	0	1	0	3.00

Intercorp Financial Services has a consensus target price of $30.00, suggesting a potential upside of 2.90%. Given Intercorp Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Intercorp Financial Services is more favorable than Summit State Bank.

Earnings and Valuation

This table compares Summit State Bank and Intercorp Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit State Bank	$65.44 million	N/A	$10.82 million	$0.72	9.83
Intercorp Financial Services	$1.63 billion	N/A	$286.85 million	$2.55	11.43

Intercorp Financial Services has higher revenue and earnings than Summit State Bank. Summit State Bank is trading at a lower price-to-earnings ratio than Intercorp Financial Services, indicating that it is currently the more affordable of the two stocks.

Dividends

Summit State Bank pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. Intercorp Financial Services pays an annual dividend of $0.95 per share and has a dividend yield of 3.3%. Summit State Bank pays out 22.2% of its earnings in the form of a dividend. Intercorp Financial Services pays out 37.3% 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.

Summary

Intercorp Financial Services beats Summit State Bank on 12 of the 13 factors compared between the two stocks.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.