South State (SSB) versus SVB Financial Group (SIVB) Financial Comparison

South State (NASDAQ: SIVB) and SVB Financial Group (NASDAQ:SIVB) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Dividends

South State pays an annual dividend of $1.40 per share and has a dividend yield of 1.7%. 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.

Earnings and Valuation

This table compares South State and SVB Financial Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
South State $575.15 million 5.22 $87.55 million $4.85 16.80
SVB Financial Group $2.02 billion 8.40 $490.50 million $9.91 32.22

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

Volatility & 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.

Profitability

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
South State 18.27% 8.41% 1.32%
SVB Financial Group 29.56% 16.47% 1.39%

Analyst Recommendations

This is a summary of recent ratings for South State and SVB Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
South State 0 5 1 0 2.17
SVB Financial Group 0 3 14 0 2.82

South State presently has a consensus target price of $92.25, suggesting a potential upside of 13.19%. SVB Financial Group has a consensus target price of $354.60, suggesting a potential upside of 11.06%. Given South State’s higher possible upside, analysts clearly believe South State is more favorable than SVB Financial Group.

Institutional & Insider Ownership

73.9% of South State shares are held by institutional investors. Comparatively, 88.9% of SVB Financial Group shares are held by institutional investors. 2.0% of South State shares are held by insiders. Comparatively, 0.7% of SVB Financial Group 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.

Summary

SVB Financial Group beats South State on 13 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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