China CITIC Bank (OTCMKTS:CHCJY – Get Free Report) and Southside Bancshares (NYSE:SBSI – Get Free Report) 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, earnings, analyst recommendations, profitability and valuation.
Valuation and Earnings
This table compares China CITIC Bank and Southside Bancshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China CITIC Bank | $49.07 billion | 1.09 | $9.82 billion | $3.45 | 6.32 |
| Southside Bancshares | $419.03 million | 2.29 | $69.18 million | $2.54 | 12.68 |
Analyst Ratings
This is a summary of recent recommendations and price targets for China CITIC Bank and Southside Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China CITIC Bank | 0 | 1 | 0 | 0 | 2.00 |
| Southside Bancshares | 1 | 5 | 1 | 0 | 2.00 |
Southside Bancshares has a consensus price target of $34.75, indicating a potential upside of 7.91%. Given Southside Bancshares’ higher possible upside, analysts clearly believe Southside Bancshares is more favorable than China CITIC Bank.
Volatility & Risk
China CITIC Bank has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Institutional and Insider Ownership
55.7% of Southside Bancshares shares are held by institutional investors. 5.1% of Southside Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.0%. Southside Bancshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.6%. China CITIC Bank pays out 25.2% of its earnings in the form of a dividend. Southside Bancshares pays out 58.3% 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 China CITIC Bank and Southside Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China CITIC Bank | 20.81% | 8.54% | 0.72% |
| Southside Bancshares | 16.70% | 11.16% | 1.11% |
Summary
Southside Bancshares beats China CITIC Bank on 11 of the 16 factors compared between the two stocks.
About China CITIC Bank
China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.
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.
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