Financial Survey: SouthState Bank (NYSE:SSB) vs. Mechanics Bancorp (NASDAQ:MCHB)

Mechanics Bancorp (NASDAQ:MCHB) and SouthState Bank (NYSE:SSB) are both financial services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Mechanics Bancorp and SouthState Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mechanics Bancorp	$586.19 million	0.43	-$144.34 million	($6.76)	-1.96
SouthState Bank	$2.39 billion	3.76	$534.78 million	$7.27	12.32

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

Insider and Institutional Ownership

74.7% of Mechanics Bancorp shares are owned by institutional investors. Comparatively, 89.8% of SouthState Bank shares are owned by institutional investors. 4.6% of Mechanics Bancorp shares are owned by insiders. Comparatively, 1.7% of SouthState Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Mechanics Bancorp and SouthState Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mechanics Bancorp	0	1	0	0	2.00
SouthState Bank	0	2	11	2	3.00

Mechanics Bancorp presently has a consensus target price of $14.50, indicating a potential upside of 9.19%. SouthState Bank has a consensus target price of $115.31, indicating a potential upside of 28.72%. Given SouthState Bank’s stronger consensus rating and higher probable upside, analysts clearly believe SouthState Bank is more favorable than Mechanics Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mechanics Bancorp	-42.54%	-3.92%	-0.21%
SouthState Bank	20.25%	10.70%	1.42%

Volatility & Risk

Mechanics Bancorp has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, SouthState Bank has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Summary

SouthState Bank beats Mechanics Bancorp on 13 of the 15 factors compared between the two stocks.

About Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.

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.