Contrasting First Financial Bankshares (NASDAQ:FFIN) & SouthState (NASDAQ:SSB)

First Financial Bankshares (NASDAQ:FFIN) and SouthState (NASDAQ:SSB) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Risk & Volatility

First Financial Bankshares has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, SouthState has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Financial Bankshares and SouthState”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$537.04 million	8.72	$223.51 million	$1.56	21.00
SouthState	$1.67 billion	5.12	$534.78 million	$6.96	12.09

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

Dividends

First Financial Bankshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.2%. SouthState pays an annual dividend of $2.16 per share and has a dividend yield of 2.6%. First Financial Bankshares pays out 46.2% of its earnings in the form of a dividend. SouthState pays out 31.0% 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. First Financial Bankshares has increased its dividend for 14 consecutive years and SouthState has increased its dividend for 13 consecutive years. SouthState is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for First Financial Bankshares and SouthState, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	4	0	0	2.00
SouthState	0	2	7	1	2.90

First Financial Bankshares currently has a consensus target price of $40.25, indicating a potential upside of 22.86%. SouthState has a consensus target price of $117.90, indicating a potential upside of 40.06%. Given SouthState’s stronger consensus rating and higher possible upside, analysts clearly believe SouthState is more favorable than First Financial Bankshares.

Profitability

This table compares First Financial Bankshares and SouthState’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	29.69%	14.24%	1.66%
SouthState	22.38%	9.62%	1.21%

Insider & Institutional Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 89.8% of SouthState shares are owned by institutional investors. 4.0% of First Financial Bankshares shares are owned by insiders. Comparatively, 1.7% of SouthState 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.

Summary

SouthState beats First Financial Bankshares on 10 of the 18 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

About SouthState

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 offers checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits, as well as bond accounting, asset/liability consulting related activities, and other clearing and corporate checking account services. 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, as well as business, agriculture, real estate-secured (mortgage), home improvement, and manufactured housing loans. In addition, it provides debit card, mobile services, funds transfer products and services, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury services, as well as asset and wealth management, and other fiduciary and private banking 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 management services; and credit cards, letters of credit, and home equity lines of credit. The company 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.