Triumph Financial (NYSE:TFIN) & SouthState Bank (NYSE:SSB) Critical Analysis

SouthState Bank (NYSE:SSB) and Triumph Financial (NYSE:TFIN) are both financial services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for SouthState Bank and Triumph Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthState Bank	0	3	10	2	2.93
Triumph Financial	1	0	0	0	1.00

SouthState Bank currently has a consensus price target of $115.31, suggesting a potential upside of 25.86%. Given SouthState Bank’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SouthState Bank is more favorable than Triumph Financial.

Profitability

This table compares SouthState Bank and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SouthState Bank	20.25%	10.70%	1.42%
Triumph Financial	2.00%	1.76%	0.24%

Insider and Institutional Ownership

89.8% of SouthState Bank shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 1.7% of SouthState Bank shares are held by company insiders. Comparatively, 5.6% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares SouthState Bank and Triumph Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthState Bank	$2.44 billion	3.77	$534.78 million	$7.27	12.60
Triumph Financial	$422.32 million	3.39	$16.09 million	$0.29	207.52

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

Volatility and Risk

SouthState Bank has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Summary

SouthState Bank beats Triumph Financial on 11 of the 15 factors compared between the two stocks.

About SouthState Bank

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 Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.