Critical Comparison: Ameris Bancorp (NASDAQ:ABCB) versus Southside Bancshares (NASDAQ:SBSI)

Southside Bancshares (NASDAQ:SBSI) and Ameris Bancorp (NASDAQ:ABCB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Dividends

Southside Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 4.6%. Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Southside Bancshares pays out 62.9% of its earnings in the form of a dividend. Ameris Bancorp pays out 13.3% 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. Southside Bancshares has raised its dividend for 30 consecutive years. Southside Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Southside Bancshares and Ameris Bancorp’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%
Ameris Bancorp	21.46%	9.57%	1.32%

Institutional & Insider Ownership

55.7% of Southside Bancshares shares are owned by institutional investors. Comparatively, 91.6% of Ameris Bancorp shares are owned by institutional investors. 6.0% of Southside Bancshares shares are owned by insiders. Comparatively, 5.4% of Ameris Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Southside Bancshares and Ameris Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southside Bancshares	$235.49 million	3.99	$88.49 million	$2.29	13.64
Ameris Bancorp	$1.17 billion	4.70	$358.68 million	$6.00	13.47

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Southside Bancshares and Ameris Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southside Bancshares	0	3	0	0	2.00
Ameris Bancorp	0	2	4	0	2.67

Southside Bancshares currently has a consensus price target of $35.00, suggesting a potential upside of 12.07%. Ameris Bancorp has a consensus price target of $86.50, suggesting a potential upside of 7.01%. Given Southside Bancshares’ higher possible upside, equities research analysts plainly believe Southside Bancshares is more favorable than Ameris Bancorp.

Risk and Volatility

Southside Bancshares has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Ameris Bancorp has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Summary

Ameris Bancorp beats Southside Bancshares on 12 of the 17 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 Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.