Head-To-Head Survey: Southside Bancshares (NYSE:SBSI) vs. Pinnacle Bank (OTCMKTS:PBNK)

Southside Bancshares (NYSE:SBSI) and Pinnacle Bank (OTCMKTS:PBNK) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Southside Bancshares has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Pinnacle Bank has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Southside Bancshares and Pinnacle Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southside Bancshares	0	1	0	0	2.00
Pinnacle Bank	0	0	0	0	0.00

Valuation and Earnings

This table compares Southside Bancshares and Pinnacle Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southside Bancshares	$240.20 million	3.53	$88.49 million	$2.30	12.24
Pinnacle Bank	$53.91 million	2.17	$8.85 million	$1.00	19.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Southside Bancshares	15.58%	10.94%	1.07%
Pinnacle Bank	14.83%	7.72%	0.88%

Insider and Institutional Ownership

55.7% of Southside Bancshares shares are owned by institutional investors. Comparatively, 8.4% of Pinnacle Bank shares are owned by institutional investors. 6.0% of Southside Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Southside Bancshares beats Pinnacle Bank on 11 of the 12 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 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.

About Pinnacle Bank

Pinnacle Bank, a commercial bank, provides various depository and credit services in Santa Clara, San Benito, and Monterey counties. The company offers checking, savings, money market, sweep, and individual retirement accounts, as well as certificates of deposit and certificates of deposit account registry services. It also provides home equity lines of credit and single family home construction loans; and loans and lines of credit, letters of credit, commercial real estate, and government assisted loans, as well as credit cards. In addition, the company offers automated teller machine cards/debit cards, debit card protection products, and safe deposit boxes; cash management products, such as online and mobile banking, online bill payment, mobile check deposit, automated clearing house (ACH) origination, remote deposit capture, night depository box, positive pay, ACH fraud filter, merchant card processing, wire transfer, and foreign currency services; and asset based lending covering accounts receivable financing, factoring, and purchase order financing services. It serves individual and business customers, as well as nonprofit organizations in Morgan Hill, Gilroy, Salinas, and Campbell. Pinnacle Bank was founded in 2006 and is headquartered in Gilroy, California.