Southside Bancshares (SBSI) & Hudson Valley (HVB) Critical Contrast

Southside Bancshares (NASDAQ: SBSI) and Hudson Valley (NYSE:HVB) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings and Valuation

This table compares Southside Bancshares and Hudson Valley’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southside Bancshares $208.32 million 5.76 $49.34 million $1.91 17.97
Hudson Valley N/A N/A N/A $0.55 51.29

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

Institutional and Insider Ownership

43.5% of Southside Bancshares shares are held by institutional investors. 17.2% of Southside Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Southside Bancshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.3%. Hudson Valley does not pay a dividend. Southside Bancshares pays out 58.6% of its earnings in the form of a dividend. Southside Bancshares has raised its dividend for 20 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Southside Bancshares and Hudson Valley, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southside Bancshares 0 2 0 0 2.00
Hudson Valley 0 0 0 0 N/A

Southside Bancshares currently has a consensus target price of $37.00, suggesting a potential upside of 7.78%. Given Southside Bancshares’ higher probable upside, research analysts clearly believe Southside Bancshares is more favorable than Hudson Valley.

Profitability

This table compares Southside Bancshares and Hudson Valley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southside Bancshares 25.70% 10.32% 1.00%
Hudson Valley 17.98% 6.34% 0.61%

Summary

Southside Bancshares beats Hudson Valley on 10 of the 12 factors compared between the two stocks.

About Southside Bancshares

Southside Bancshares, Inc. (Southside) is a bank holding company for Southside Bank (the Bank). The Company is a community-focused financial institution that offers a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations in the communities. These services include consumer and commercial loans, deposit accounts, trust services, safe deposit services and brokerage services. As of December 31, 2016, the Company operated through 60 banking centers, 17 of which are located in grocery stores. The Company offers a range of deposit accounts with a range of interest rates and terms, including savings, money market, interest and non-interest bearing checking accounts and certificates of deposit (CDs).

About Hudson Valley

Hudson Valley Holding Corp. (Hudson Valley) is a bank holding company. The Company provides financial services through its wholly owned subsidiary, Hudson Valley Bank, N.A. (HVB or the Bank), a national banking association. HVB has 17 branch offices in Westchester County, New York, four in Manhattan, New York, four in Bronx County, New York, two in Rockland County, New York, and one in Kings County, New York. The Company provides asset-based lending products through a wholly owned subsidiary of HVB, HVB Capital Credit LLC. The Company provides equipment loan and lease financing through a wholly owned subsidiary of HVB, HVB Equipment Capital, LLC. The Company’s principal customers are businesses, professionals, municipalities, not-for-profit organizations and individuals. In addition, the Company also offers a software application designed to meet the administrative needs of bankruptcy trustees through a marketing and licensing agreement with the application vendor.

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