Critical Analysis: SouthState (NASDAQ:SSB) versus Pacific Premier Bancorp (NASDAQ:PPBI)

SouthState (NASDAQ:SSBGet Rating) and Pacific Premier Bancorp (NASDAQ:PPBIGet Rating) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Earnings & Valuation

This table compares SouthState and Pacific Premier Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SouthState $1.44 billion 4.21 $475.54 million $6.04 13.28
Pacific Premier Bancorp $804.59 million 3.78 $339.89 million $3.55 9.04

SouthState has higher revenue and earnings than Pacific Premier Bancorp. Pacific Premier Bancorp 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 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Profitability

This table compares SouthState and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SouthState 30.19% 10.33% 1.19%
Pacific Premier Bancorp 42.15% 11.95% 1.61%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SouthState and Pacific Premier Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SouthState 0 1 3 0 2.75
Pacific Premier Bancorp 0 1 1 0 2.50

SouthState presently has a consensus price target of $87.94, indicating a potential upside of 9.64%. Pacific Premier Bancorp has a consensus price target of $46.00, indicating a potential upside of 43.39%. Given Pacific Premier Bancorp’s higher possible upside, analysts clearly believe Pacific Premier Bancorp is more favorable than SouthState.

Insider & Institutional Ownership

86.2% of SouthState shares are owned by institutional investors. Comparatively, 91.9% of Pacific Premier Bancorp shares are owned by institutional investors. 1.9% of SouthState shares are owned by company insiders. Comparatively, 2.2% of Pacific Premier Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

SouthState pays an annual dividend of $1.96 per share and has a dividend yield of 2.4%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 4.1%. SouthState pays out 32.5% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out 37.2% 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 10 consecutive years and Pacific Premier Bancorp has raised its dividend for 2 consecutive years.

Summary

SouthState beats Pacific Premier Bancorp on 9 of the 17 factors compared between the two stocks.

About SouthState (Get Rating)

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 accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits. 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 loans. In addition, it provides debit card, mobile and funds transfer products, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury 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 and asset management services; and credit cards, letters of credit, and home equity lines of credit. As of December 31, 2021, it served customers through 281 branches in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. SouthState Corporation 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 Pacific Premier Bancorp (Get Rating)

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides banking services to businesses, professionals, real estate investors, and non-profit organizations. The company accepts deposit products, such as checking, money market, and savings accounts; and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, small business administration (SBA), and SBA paycheck protection program loans; revolving lines or credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and savings account secured loans and auto loans. The company also offers cash management, electronic banking, treasury management, and online bill payment services. It operates 61 full-service depository branches located in Arizona, California, Nevada, Oregon, and Washington. Pacific Premier Bancorp, Inc. was founded in 1983 and is headquartered in Irvine, California.

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