Southern States Bank Stocks (NASDAQ: SSBK – Get a rating) and First Business Financial Services (NASDAQ: FBIZ – Get a rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on valuation strength, profitability, dividends, risk, institutional ownership, earnings, and analyst recommendations.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of Southern States Bancshares and First Business Financial Services.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Southern States Bank Stocks||$68.58 million||2.93||$18.57 million||$2.02||11:38|
|First business financial services||$124.10 million||2.39||$35.76 million||$4.05||8.63|
First Business Financial Services has higher revenue and profit than Southern States Bancshares. First Business Financial Services trades at a lower price-to-earnings ratio than Southern States Bancshares, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
62.6% of Southern States Bancshares shares are held by institutional investors. By comparison, 58.3% of First Business Financial Services shares are held by institutional investors. 14.8% of Southern States Bancshares shares are held by insiders of the company. By comparison, 6.1% of First Business Financial Services shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.
Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. First Business Financial Services pays an annual dividend of $0.79 per share and has a dividend yield of 2.3%. Southern States Bancshares pays 17.8% of its profits in the form of a dividend. First Business Financial Services pays 19.5% 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. First Business Financial Services has increased its dividend for 10 consecutive years. First Business Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and target prices for Southern States Bancshares and First Business Financial Services, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Southern States Bank Stocks||0||0||2||0||3.00|
|First business financial services||0||1||1||0||2.50|
Southern States Bancshares currently has a consensus price target of $23.50, suggesting a potential upside of 2.26%. First Business Financial Services has a consensus price target of $34.00, suggesting a potential downside of 2.72%. Given Southern States Bancshares’ stronger consensus rating and higher likely upside, research analysts clearly believe that Southern States Bancshares is more favorable than First Business Financial Services.
This table compares the net margins, return on equity, and return on assets of Southern States Bancshares and First Business Financial Services.
|Net margins||Return on equity||return on assets|
|Southern States Bank Stocks||25.80%||10.21%||1.05%|
|First business financial services||27.82%||15.21%||1.28%|
About Southern States Bancshares (Get a rating)
Southern States Bancshares, Inc. operates as a bank holding company for Southern States Bank which provides community banking services to businesses and individuals. It offers various deposit products, such as savings, money market and non-interest bearing current accounts; certificates of deposit; and term deposits. The Company also offers real estate lending products, which include loans for real estate construction and development, residential mortgages and commercial real estate mortgages; commercial and industrial loans; and direct consumer installment loans, overdrafts and other revolving loans. Additionally, it offers online and mobile banking and ATM services. The company operates 15 offices in Alabama and Georgia, as well as a loan origination office in Atlanta, Georgia. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.
About First Business Financial Services (Get a rating)
First Business Financial Services, Inc. operates as a banking holding company for First Business Bank which provides commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The Company offers deposit products, such as non-interest bearing transaction accounts, interest bearing transaction accounts, money market accounts, term deposits and certificates of deposit, as well as credit cards. It also offers lending products, including commercial real estate loans, commercial and industrial loans, small business administration loans and direct finance leases, as well as consumer and other loans comprising the value net of property, first and second mortgages and other personal loans for business and executive clients. The company offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floor plan financing, cash management services and employee retirement plans. business ; trust and estate administration, financial planning, investment management and private banking; and investment portfolio administration, asset-liability management, and asset-liability management process validation services for other financial institutions. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin.
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