SouthState Bank (NYSE:SSB – Get Free Report) and Renasant (NYSE:RNST – Get Free Report) are both mid-cap financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Profitability
This table compares SouthState Bank and Renasant’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SouthState Bank | 20.25% | 10.70% | 1.42% |
| Renasant | 11.26% | 6.99% | 1.01% |
Analyst Recommendations
This is a summary of recent recommendations for SouthState Bank and Renasant, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SouthState Bank | 0 | 3 | 10 | 2 | 2.93 |
| Renasant | 0 | 1 | 0 | 1 | 3.00 |
Dividends
SouthState Bank pays an annual dividend of $2.40 per share and has a dividend yield of 2.8%. Renasant pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. SouthState Bank pays out 33.0% of its earnings in the form of a dividend. Renasant pays out 46.2% 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 raised 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.
Risk and Volatility
SouthState Bank has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Renasant has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Earnings & Valuation
This table compares SouthState Bank and Renasant”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SouthState Bank | $2.39 billion | 3.66 | $534.78 million | $7.27 | 11.98 |
| Renasant | $874.43 million | 3.65 | $195.46 million | $1.99 | 16.90 |
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.
Institutional & Insider Ownership
89.8% of SouthState Bank shares are held by institutional investors. Comparatively, 77.3% of Renasant shares are held by institutional investors. 1.7% of SouthState Bank shares are held by company insiders. Comparatively, 2.8% of Renasant shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
SouthState Bank beats Renasant on 14 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 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 estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction 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.
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