Analyzing California Business Bank (OTCMKTS:CABB) and Southside Bancshares (NYSE:SBSI)

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

Insider and Institutional Ownership

55.7% of Southside Bancshares shares are owned by institutional investors. 5.1% of Southside Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for California Business Bank and Southside Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Business Bank	0	0	0	0	0.00
Southside Bancshares	0	4	1	0	2.20

Southside Bancshares has a consensus target price of $35.00, suggesting a potential upside of 5.69%. Given Southside Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Southside Bancshares is more favorable than California Business Bank.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Business Bank	N/A	N/A	N/A	N/A	N/A
Southside Bancshares	$419.03 million	2.35	$69.18 million	$2.36	14.03

Southside Bancshares has higher revenue and earnings than California Business Bank.

Volatility and Risk

California Business Bank has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
California Business Bank	N/A	N/A	N/A
Southside Bancshares	15.85%	10.81%	1.06%

Summary

Southside Bancshares beats California Business Bank on 9 of the 10 factors compared between the two stocks.

About California Business Bank

California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was founded in 2005 and is headquartered in Irvine, California.

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.