Comparing Renasant (NYSE:RNST) & SouthState Bank (NYSE:SSB)

Renasant (NYSE:RNST) and SouthState Bank (NYSE:SSB) are both mid-cap financial services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Renasant	11.26%	6.99%	1.01%
SouthState Bank	20.25%	10.70%	1.42%

Risk and Volatility

Renasant has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, SouthState Bank has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Institutional and Insider Ownership

77.3% of Renasant shares are owned by institutional investors. Comparatively, 89.8% of SouthState Bank shares are owned by institutional investors. 2.8% of Renasant shares are owned by insiders. Comparatively, 1.7% of SouthState Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Renasant and SouthState Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Renasant	$874.43 million	3.70	$195.46 million	$1.99	17.09
SouthState Bank	$2.39 billion	3.67	$534.78 million	$7.27	12.03

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

Analyst Ratings

This is a breakdown of recent ratings for Renasant and SouthState Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Renasant	0	1	0	1	3.00
SouthState Bank	0	2	11	2	3.00

SouthState Bank has a consensus target price of $114.92, suggesting a potential upside of 31.35%. Given SouthState Bank’s higher possible upside, analysts plainly believe SouthState Bank is more favorable than Renasant.

Dividends

Renasant pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. SouthState Bank pays an annual dividend of $2.40 per share and has a dividend yield of 2.7%. Renasant pays out 46.2% of its earnings in the form of a dividend. SouthState Bank pays out 33.0% 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. SouthState Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

SouthState Bank beats Renasant on 13 of the 17 factors compared between the two stocks.

About Renasant

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

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.