Reviewing Southside Bancshares (SBSI) & Its Peers

Profitability

This table compares Southside Bancshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southside Bancshares	19.07%	10.59%	1.02%
Southside Bancshares Competitors	17.79%	10.48%	1.21%

Valuation & Earnings

This table compares Southside Bancshares and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Southside Bancshares	$260.02 million	$88.49 million	10.88
Southside Bancshares Competitors	$841.54 million	$149.21 million	13.45

Southside Bancshares’ competitors have higher revenue and earnings than Southside Bancshares. Southside Bancshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

55.7% of Southside Bancshares shares are owned by institutional investors. Comparatively, 54.3% of shares of all “BANKS – SOUTHWEST” companies are owned by institutional investors. 6.0% of Southside Bancshares shares are owned by company insiders. Comparatively, 13.3% of shares of all “BANKS – SOUTHWEST” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Southside Bancshares has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Southside Bancshares’ competitors have a beta of 0.52, indicating that their average share price is 48% less volatile than the S&P 500.

Dividends

Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.7%. Southside Bancshares pays out 51.1% of its earnings in the form of a dividend. As a group, “BANKS – SOUTHWEST” companies pay a dividend yield of 2.0% and pay out 20.1% of their earnings in the form of a dividend. Southside Bancshares has increased its dividend for 30 consecutive years.

Summary

Southside Bancshares competitors beat Southside Bancshares on 6 of the 11 factors compared.

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 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, revocable and testamentary trusts, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. As of December 31, 2021, the company operated through 56 banking facilities and 73 ATMs/ITMs. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.