Pacific Premier Bancorp (NASDAQ:PPBI – Get Free Report) and Southside Bancshares (NASDAQ:SBSI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Risk and Volatility
Pacific Premier Bancorp has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Dividends
Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 6.6%. Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 5.2%. Pacific Premier Bancorp pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southside Bancshares pays out 49.5% of its earnings in the form of a dividend.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Pacific Premier Bancorp | 17.54% | 5.43% | 0.87% |
Southside Bancshares | 19.40% | 11.10% | 1.06% |
Insider & Institutional Ownership
93.1% of Pacific Premier Bancorp shares are held by institutional investors. Comparatively, 55.7% of Southside Bancshares shares are held by institutional investors. 2.2% of Pacific Premier Bancorp shares are held by insiders. Comparatively, 5.9% of Southside Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Pacific Premier Bancorp and Southside Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Pacific Premier Bancorp | $567.77 million | 3.40 | $158.80 million | $1.64 | 12.21 |
Southside Bancshares | $257.86 million | 3.26 | $88.49 million | $2.91 | 9.50 |
Pacific Premier Bancorp has higher revenue and earnings than Southside Bancshares. Southside Bancshares is trading at a lower price-to-earnings ratio than Pacific Premier Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Pacific Premier Bancorp and Southside Bancshares, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Pacific Premier Bancorp | 0 | 3 | 3 | 0 | 2.50 |
Southside Bancshares | 0 | 3 | 0 | 0 | 2.00 |
Pacific Premier Bancorp presently has a consensus price target of $27.00, suggesting a potential upside of 34.87%. Southside Bancshares has a consensus price target of $37.00, suggesting a potential upside of 33.83%. Given Pacific Premier Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Pacific Premier Bancorp is more favorable than Southside Bancshares.
Summary
Pacific Premier Bancorp beats Southside Bancshares on 10 of the 16 factors compared between the two stocks.
About Pacific Premier Bancorp
Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.
About Southside Bancshares
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 deposits. 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 consumer related 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 wealth management and trust services consisting of investment management, administration of irrevocable, revocable, and testamentary trusts, estate administration, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. In addition, the company provides retirement and employee benefit accounts, including plans and profit sharing plans; and telephone, internet, and mobile banking services. The company offers various banking services through branches, drive-thru facilities, automated teller machines, and interactive teller machines. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.
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