Head to Head Review: Pinnacle Bancshares (OTCMKTS:PCLB) & South State (OTCMKTS:SSB)

Pinnacle Bancshares (OTCMKTS:PCLB) and South State (NASDAQ:SSB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Volatility and Risk

Pinnacle Bancshares has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, South State has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Insider and Institutional Ownership

6.0% of Pinnacle Bancshares shares are owned by institutional investors. Comparatively, 80.0% of South State shares are owned by institutional investors. 14.4% of Pinnacle Bancshares shares are owned by company insiders. Comparatively, 2.1% of South State shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pinnacle Bancshares and South State’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pinnacle Bancshares $9.43 million 3.18 $2.29 million N/A N/A
South State $712.96 million 3.84 $178.87 million $5.50 14.76

South State has higher revenue and earnings than Pinnacle Bancshares.

Dividends

Pinnacle Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. South State pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. South State pays out 31.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Pinnacle Bancshares and South State, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinnacle Bancshares 0 0 0 0 N/A
South State 0 2 1 0 2.33

South State has a consensus price target of $76.50, suggesting a potential downside of 5.74%. Given South State’s higher probable upside, analysts clearly believe South State is more favorable than Pinnacle Bancshares.

Profitability

This table compares Pinnacle Bancshares and South State’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinnacle Bancshares N/A N/A N/A
South State 25.53% 8.22% 1.26%

Summary

South State beats Pinnacle Bancshares on 11 of the 14 factors compared between the two stocks.

About Pinnacle Bancshares

Pinnacle Bancshares, Inc. operates as the bank holding company for Pinnacle Bank that provides banking products and services in Alabama. The company's deposit products include savings accounts, checking accounts, individual retirement accounts, money market deposit accounts, certificates of deposit, interest accounts, and student accounts, as well as demand and time deposits. Its loan portfolio comprises commercial real estate loans, real estate construction and development loans, residential real estate loans, and other real estate loans; commercial non-real estate loans, such as commercial, financial, agricultural, and municipal tax free loans; home mortgage loans; and consumer loans comprising installment loans, overdrafts, and other revolving credit loans, as well as automobile, recreational vehicle, boat, second and vacation home, construction, and bridge loans. The company also offers phone and online banking services; and other services, including merchant services, transfer and payment, automated clearing house, payroll direct deposit, e-statement, safe deposit box, and remote deposit services, as well as notary services. It operates seven offices in the central and northwest Alabama. Pinnacle Bancshares, Inc. was founded in 1935 and is based in Jasper, Alabama.

About South State

South State Corporation operates as the bank holding company for South State Bank that provides a range of retail and commercial banking services, mortgage lending services, trust and wealth management services, and consumer finance loans. The company accepts demand deposits, savings deposits, interest-bearing transaction accounts, certificates of deposit, and other time deposits; and offers lending and credit card, and ATM processing services. It serves customers through 168 financial centers in 29 South Carolina counties, 8 North Carolina counties, 17 Georgia counties, and 4 Virginia counties. The company was formerly known as First Financial Holdings, Inc. and changed its name to South State Corporation in July 2013. South State Corporation was founded in 1933 and is headquartered in Columbia, South Carolina.

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