SouthState (NASDAQ:SSB – Get Free Report) and ACNB (NASDAQ:ACNB – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
89.8% of SouthState shares are held by institutional investors. Comparatively, 32.3% of ACNB shares are held by institutional investors. 1.7% of SouthState shares are held by company insiders. Comparatively, 3.6% of ACNB shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
SouthState pays an annual dividend of $2.16 per share and has a dividend yield of 2.3%. ACNB pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. SouthState pays out 31.0% of its earnings in the form of a dividend. ACNB pays out 34.3% 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 has raised its dividend for 13 consecutive years.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SouthState | $1.67 billion | 5.66 | $534.78 million | $6.96 | 13.36 |
| ACNB | $108.34 million | 3.99 | $31.85 million | $3.73 | 10.99 |
SouthState has higher revenue and earnings than ACNB. ACNB is trading at a lower price-to-earnings ratio than SouthState, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SouthState has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, ACNB has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for SouthState and ACNB, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SouthState | 0 | 2 | 7 | 1 | 2.90 |
| ACNB | 0 | 0 | 4 | 0 | 3.00 |
SouthState currently has a consensus target price of $118.40, indicating a potential upside of 27.28%. ACNB has a consensus target price of $48.40, indicating a potential upside of 18.08%. Given SouthState’s higher probable upside, equities analysts plainly believe SouthState is more favorable than ACNB.
Profitability
This table compares SouthState and ACNB’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SouthState | 22.38% | 9.62% | 1.21% |
| ACNB | 24.09% | 10.91% | 1.31% |
Summary
SouthState beats ACNB on 12 of the 18 factors compared between the two stocks.
About SouthState
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 offers checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits, as well as bond accounting, asset/liability consulting related activities, and other clearing and corporate checking account services. 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, as well as business, agriculture, real estate-secured (mortgage), home improvement, and manufactured housing loans. In addition, it provides debit card, mobile services, funds transfer products and services, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury services, as well as asset and wealth management, and other fiduciary and private banking 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 management services; and credit cards, letters of credit, and home equity lines of credit. The company 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 ACNB
ACNB Corporation, a financial holding company, offers banking, insurance, and financial services to individual, business, and government customers in the United States. The company provides checking, savings, and money market deposit accounts, as well as time deposits and debit cards. It also offers commercial lending products, such as commercial mortgages, real estate development and construction loans, accounts receivable and inventory financing, and agricultural and governmental loans; consumer lending products, including home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit; and mortgage lending programs include personal residential mortgages, and residential construction and investment mortgage loans. In addition, the company provides other services that are related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, powers of attorney, custodial accounts, and investment management and advisory accounts; and retail brokerage services. Further, it acts as a trustee to invest in, protect, manage, and distribute financial assets. Additionally, the company offers property and casualty, health, life, and disability insurance products to commercial and personal clients; and online, telephone, and mobile banking, as well as automated teller machine services. ACNB Corporation was founded in 1857 and is headquartered in Gettysburg, Pennsylvania.
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