Comparing Southside Bancshares (NASDAQ:SBSI) & Sberbank of Russia (OTCMKTS:SBRCY)

Southside Bancshares (NASDAQ:SBSI) and Sberbank of Russia (OTCMKTS:SBRCY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

55.7% of Southside Bancshares shares are held by institutional investors. Comparatively, 0.1% of Sberbank of Russia shares are held by institutional investors. 6.0% of Southside Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Southside Bancshares and Sberbank of Russia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southside Bancshares	$260.02 million	3.64	$88.49 million	$2.82	11.15
Sberbank of Russia	$49.52 billion	0.06	$16.97 billion	N/A	N/A

Sberbank of Russia has higher revenue and earnings than Southside Bancshares.

Risk and Volatility

Southside Bancshares has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Sberbank of Russia has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southside Bancshares	0	3	0	0	2.00
Sberbank of Russia	0	0	0	0	0.00

Southside Bancshares presently has a consensus target price of $35.00, indicating a potential upside of 11.31%. Given Southside Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Southside Bancshares is more favorable than Sberbank of Russia.

Dividends

Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.6%. Sberbank of Russia pays an annual dividend of $0.85 per share and has a dividend yield of 163.5%. Southside Bancshares pays out 51.1% of its earnings in the form of a dividend. Southside Bancshares has raised its dividend for 30 consecutive years.

Profitability

This table compares Southside Bancshares and Sberbank of Russia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southside Bancshares	19.40%	11.10%	1.06%
Sberbank of Russia	40.80%	21.45%	2.97%

Summary

Sberbank of Russia beats Southside Bancshares on 8 of the 14 factors compared between the two stocks.

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 deposits. 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 of irrevocable, revocable, and testamentary trusts, estate administration, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. In addition, the company provides retirement and employee benefit accounts, including plans and profit sharing plans; and telephone, internet, and mobile banking services. The company offers various banking services through branches, drive-thru facilities, automated teller machines, and interactive teller machines. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

About Sberbank of Russia

Sberbank of Russia, together with its subsidiaries, provides corporate and retail banking products and services to individuals, small businesses, corporate clients, and financial institutions. The company offers deposit products; pension accounts; payment, transfer, brokerage, and asset management services; car, housing, education, and consumer loans; mortgages; debit and credit cards, and overdraft service; and refinancing products. It also provides derivative, financial instrument, foreign currency, precious metal, corporate structured, and commodities and securities products, as well as debt and capital markets funding, documentary, and other commission services. In addition, it offers life, property, bank card, accident, liability, trust management, investment and universal life, travel, and mutual investment funds insurance products, as well as individual pension plans and corporate pension programs. Additionally, the company provides business bank accounts, platform for exporters and importers, merchant acquiring and international trading services, and corporate cards for small businesses; and loans, investment products and capital markets services, fund investment services, and banking services for corporate clients. It also provides trade finance, interbank lending, currency risk hedging, and treasury services; deposits, custody services, and electronic trading systems; and settlement and cash collection services to financial institutions. As of December 31, 2020, the company operated 11 Regional banks and 14,162 branches in Russia. The company also has operations in 18 countries internationally. Sberbank of Russia was founded in 1841 and is headquartered in Moscow, Russia.