International Bancshares (NASDAQ:IBOC) versus Southside Bancshares (NYSE:SBSI) Head to Head Contrast

International Bancshares (NASDAQ:IBOC) and Southside Bancshares (NYSE:SBSI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares International Bancshares and Southside Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	39.33%	13.16%	2.52%
Southside Bancshares	15.85%	10.81%	1.06%

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.5%. International Bancshares pays out 21.8% of its earnings in the form of a dividend. Southside Bancshares pays out 61.0% 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. International Bancshares has increased its dividend for 16 consecutive years and Southside Bancshares has increased its dividend for 30 consecutive years. Southside Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and price targets for International Bancshares and Southside Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	0	1	4.00
Southside Bancshares	0	4	1	0	2.20

International Bancshares currently has a consensus target price of $85.00, indicating a potential upside of 20.01%. Southside Bancshares has a consensus target price of $35.00, indicating a potential upside of 9.80%. Given International Bancshares’ stronger consensus rating and higher probable upside, equities analysts plainly believe International Bancshares is more favorable than Southside Bancshares.

Earnings & Valuation

This table compares International Bancshares and Southside Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$852.41 million	5.17	$412.29 million	$6.70	10.57
Southside Bancshares	$419.03 million	2.26	$69.18 million	$2.36	13.51

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

Volatility and Risk

International Bancshares has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 55.7% of Southside Bancshares shares are held by institutional investors. 13.4% of International Bancshares shares are held by insiders. Comparatively, 5.1% of Southside Bancshares shares are held 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.

Summary

International Bancshares beats Southside Bancshares on 14 of the 18 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About Southside Bancshares

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposit. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration, revocable and testamentary trusts, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. As of December 31, 2021, the company operated through 56 banking facilities and 73 ATMs/ITMs. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.