Financial Analysis: SouthState Bank (NYSE:SSB) and Isabella Bank (NASDAQ:ISBA)

SouthState Bank (NYSE:SSB) and Isabella Bank (NASDAQ:ISBA) are both financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

89.8% of SouthState Bank shares are owned by institutional investors. 1.7% of SouthState Bank shares are owned by company insiders. Comparatively, 1.5% of Isabella Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

SouthState Bank pays an annual dividend of $2.40 per share and has a dividend yield of 2.5%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.1%. SouthState Bank pays out 35.8% of its earnings in the form of a dividend. Isabella Bank pays out 51.1% 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. SouthState Bank has increased its dividend for 13 consecutive years.

Volatility & Risk

SouthState Bank has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Isabella Bank has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Profitability

This table compares SouthState Bank and Isabella Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SouthState Bank	19.27%	10.23%	1.34%
Isabella Bank	15.18%	7.83%	0.80%

Earnings and Valuation

This table compares SouthState Bank and Isabella Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthState Bank	$2.44 billion	3.99	$534.78 million	$6.71	14.34
Isabella Bank	$104.55 million	2.57	$13.89 million	$2.19	16.65

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SouthState Bank and Isabella Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthState Bank	0	2	10	3	3.07
Isabella Bank	0	1	1	0	2.50

SouthState Bank currently has a consensus price target of $117.08, suggesting a potential upside of 21.65%. Isabella Bank has a consensus price target of $34.00, suggesting a potential downside of 6.75%. Given SouthState Bank’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SouthState Bank is more favorable than Isabella Bank.

Summary

SouthState Bank beats Isabella Bank on 16 of the 18 factors compared between the two stocks.

About SouthState Bank

SouthState Corporation operates as the bank holding company for SouthState Bank, National Association that provides a range of banking services and products to individuals and companies. It accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits. The company also offers commercial real estate loans, residential real estate loans, commercial, and industrial loans, as well as consumer loans, including auto, boat, and personal installment loans. In addition, it provides debit card, mobile and funds transfer products, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury services. Further, the company offers safe deposit boxes, bank money orders, wire transfer, brokerage services, and alternative investment products, including annuities, mutual funds, and trust and asset management services; and credit cards, letters of credit, and home equity lines of credit. As of December 31, 2021, it served customers through 281 branches in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. SouthState Corporation also serves its customers through online, mobile, and telephone banking platforms. The company was formerly known as First Financial Holdings, Inc. and changed its name to SouthState Corporation in July 2013. SouthState Corporation was founded in 1933 and is headquartered in Winter Haven, Florida.

About Isabella Bank

Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides various banking products and services to businesses, institutions, and individuals and their families. Its deposit products include checking accounts, savings accounts, certificates of deposit, direct deposits, and money market accounts. The company’s loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. It also offers cash management, mobile and internet banking, electronic bill pay, automated teller machines, trust and investment, estate planning, and safe deposit box rental services; and group life, health, accident, disability, and other insurance products, as well as other employee benefit programs. As of December 31, 2021, the company operated 30 banking offices in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.