Head-To-Head Contrast: SouthState (NASDAQ:SSB) versus Truxton (OTCMKTS:TRUX)

SouthState (NASDAQ:SSB) and Truxton (OTCMKTS:TRUX) 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

89.8% of SouthState shares are held by institutional investors. Comparatively, 0.4% of Truxton shares are held by institutional investors. 1.3% of SouthState 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.

Valuation & Earnings

This table compares SouthState and Truxton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthState	$1.65 billion	4.46	$494.31 million	$6.13	15.75
Truxton	$67.30 million	3.03	$17.54 million	$6.06	11.74

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

Risk and Volatility

SouthState has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Truxton has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for SouthState and Truxton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthState	0	4	5	0	2.56
Truxton	0	0	0	0	N/A

SouthState presently has a consensus target price of $102.89, indicating a potential upside of 6.57%. Given SouthState’s higher probable upside, analysts plainly believe SouthState is more favorable than Truxton.

Dividends

SouthState pays an annual dividend of $2.16 per share and has a dividend yield of 2.2%. Truxton pays an annual dividend of $1.72 per share and has a dividend yield of 2.4%. SouthState pays out 35.2% of its earnings in the form of a dividend. Truxton pays out 28.4% 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. SouthState has raised its dividend for 13 consecutive years. Truxton is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares SouthState and Truxton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SouthState	20.84%	9.31%	1.13%
Truxton	23.10%	N/A	N/A

Summary

SouthState beats Truxton on 13 of the 16 factors compared between the two stocks.

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.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.