China Minsheng (OTCMKTS:CMAKY – Get Free Report) and Southside Bancshares (NYSE:SBSI – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Volatility & Risk
China Minsheng has a beta of 0.29, suggesting that its share price is 71% 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 China Minsheng and Southside Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Minsheng | 10.72% | 3.89% | 0.35% |
| Southside Bancshares | 16.70% | 11.16% | 1.11% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Minsheng | 0 | 0 | 0 | 1 | 4.00 |
| Southside Bancshares | 1 | 5 | 1 | 0 | 2.00 |
Southside Bancshares has a consensus target price of $34.75, indicating a potential upside of 5.91%. Given Southside Bancshares’ higher probable upside, analysts clearly believe Southside Bancshares is more favorable than China Minsheng.
Dividends
China Minsheng pays an annual dividend of $0.11 per share and has a dividend yield of 2.4%. Southside Bancshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.5%. China Minsheng pays out 12.8% 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.
Valuation & Earnings
This table compares China Minsheng and Southside Bancshares”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Minsheng | $33.55 billion | 0.60 | $4.25 billion | $0.86 | 5.37 |
| Southside Bancshares | $419.03 million | 2.33 | $69.18 million | $2.54 | 12.92 |
China Minsheng has higher revenue and earnings than Southside Bancshares. China Minsheng is trading at a lower price-to-earnings ratio than Southside Bancshares, indicating that it is currently the more affordable of the two stocks.
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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Southside Bancshares beats China Minsheng on 13 of the 18 factors compared between the two stocks.
About China Minsheng
China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.
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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