Bay Banks of Virginia (OTCMKTS: BAYK) and South State (NASDAQ:SSB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares Bay Banks of Virginia and South State’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bay Banks of Virginia||$22.55 million||6.05||$2.53 million||$0.21||49.29|
|South State||$463.49 million||7.07||$101.28 million||$3.90||22.88|
Institutional and Insider Ownership
9.6% of Bay Banks of Virginia shares are owned by institutional investors. Comparatively, 55.7% of South State shares are owned by institutional investors. 7.9% of Bay Banks of Virginia shares are owned by insiders. Comparatively, 2.8% of South State shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Bay Banks of Virginia pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. South State pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Bay Banks of Virginia pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. South State pays out 33.8% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Bay Banks of Virginia and South State, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bay Banks of Virginia||0||0||1||0||3.00|
South State has a consensus price target of $97.33, suggesting a potential upside of 9.06%. Given South State’s higher possible upside, analysts plainly believe South State is more favorable than Bay Banks of Virginia.
This table compares Bay Banks of Virginia and South State’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bay Banks of Virginia||5.25%||3.17%||0.32%|
Risk and Volatility
Bay Banks of Virginia has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, South State has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
South State beats Bay Banks of Virginia on 12 of the 16 factors compared between the two stocks.
About Bay Banks of Virginia
Bay Banks of Virginia, Inc. is a bank holding company that conducts its operations through its subsidiaries, Virginia Commonwealth Bank and Bay Trust Company. The Bank is a state-chartered bank and a member of the Federal Reserve System. It serves businesses, professionals and consumers with a range of financial services, including retail and commercial banking, investment services and mortgage banking. Its products include cash management accounts, individual retirement accounts, commercial and industrial loans, residential mortgages, commercial mortgages, home equity loans, consumer installment loans, investment accounts, insurance, credit cards and telephone banking. Its deposits include non-interest bearing demand deposits, interest bearing deposits and time deposits. The Trust Company provides management services for personal and corporate trusts, including estate planning, estate settlement and trust administration.
About South State
South State Corporation (NASDAQ: SSB) is the largest bank holding company headquartered in South Carolina. Founded in 1933, the company’s primary subsidiary, South State Bank, has been serving the financial needs of its local communities in 19 South Carolina counties, 12 Georgia counties and 4 North Carolina counties for over 80 years. The bank also operates Minis & Co., Inc. and First Southeast 401K Fiduciaries, Inc., both registered investment advisors; and First Southeast Investor Services, Inc., a limited purpose broker-dealer. South State Corporation has assets of approximately $8.0 billion and its stock is traded under the symbol SSB on the NASDAQ Global Select Market. More information can be found at www.SouthStateBank.com.
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