Direct comparison between Southside Bancshares (NASDAQ:SBSI) and Norwood Financial (NASDAQ:NWFL)

Norwood Financial (NASDAQ:NWFL – Get Rating) and Southside Bancshares (NASDAQ:SBSI – Get Rating) are both small cap financials, but which stock is superior? We’ll compare the two companies based on their dividend strength, valuation, risk, profitability, analyst recommendations, earnings, and institutional ownership.

Risk and Volatility

Norwood Financial has a beta of 0.44, meaning its stock price is 56% less volatile than the S&P 500. In comparison, Southside Bancshares has a beta of 0.54, meaning its stock price is 46 % less volatile than the S&P 500.

Valuation and benefits

This chart compares gross revenue, earnings per share (EPS), and valuation of Norwood Financial and Southside Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Norwood Financial $79.39 million 2.71 $24.92 million $3.23 8.14
Southside Bancshares $265.32 million 4.84 $113.40 million $3.20 12:49

Southside Bancshares has higher revenue and profit than Norwood Financial. Norwood Financial trades at a lower price-to-earnings ratio than Southside Bancshares, indicating that it is currently the more affordable of the two stocks.


This table compares the net margins, return on equity and return on assets of Norwood Financial and Southside Bancshares.

Net margins Return on equity return on assets
Norwood Financial 32.80% 13.33% 1.29%
Southside Bancshares 39.70% 12.09% 1.46%

Insider and Institutional Ownership

16.9% of Norwood Financial shares are held by institutional investors. By comparison, 51.3% of Southside Bancshares shares are held by institutional investors. 9.7% of Norwood Financial’s stock is held by insiders of the company. By comparison, 5.7% of Southside Bancshares shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Norwood Financial and Southside Bancshares, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Norwood Financial 0 0 0 0 N / A
Southside Bancshares 0 2 0 0 2.00

Southside Bancshares has a consensus price target of $39.91, suggesting a potential downside of 0.15%. Given Southside Bancshares’ likely higher upside, analysts clearly believe that Southside Bancshares is more favorable than Norwood Financial.


Norwood Financial pays an annual dividend of $1.12 per share and has a dividend yield of 4.3%. Southside Bancshares pays an annual dividend of $1.36 per share and has a dividend yield of 3.4%. Norwood Financial pays 34.7% of its profits as a dividend. Southside Bancshares pays 42.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Norwood Financial has increased its dividend for 7 consecutive years and Southside Bancshares has increased its dividend for 29 consecutive years. Norwood Financial is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.


Southside Bancshares beats Norwood Financial on 10 out of 15 factors compared between the two stocks.

About Norwood Financial (Get a rating)

Norwood Financial Corp. operates as a bank holding company for Wayne Bank which provides various banking products and services. The Company accepts a range of deposit products, including interest-bearing and interest-free transaction accounts, savings and money market accounts, and certificates of deposit. It also offers various loans, such as commercial loans including lines of credit, revolving loans, term loans, mortgages, secured loan products and letter of credit facilities; municipal finance loans; construction loans for commercial construction projects and single family residences; land loans; consumer loans; mortgage loans for the financing of principal residences and secondary residences; and indirect financing by dealers of new and used automobiles, boats and recreational vehicles. In addition, the company offers investment securities services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, mobile payment, automated clearinghouse business, real estate settlement, and internet and mobile banking. In addition, it is engaged in the sale of annuities and mutual funds and discount brokerage, as well as insurance agency business. The company serves consumers, businesses, non-profit organizations and municipalities. It operates fourteen offices in northeastern Pennsylvania; and sixteen offices in Delaware, Sullivan, Ontario, Otsego and Yates counties, New York, as well as thirty-one ATMs. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

About Southside Bancshares (Get a rating)

Southside Bancshares, Inc. operates as a banking holding company for Southside Bank which provides a range of financial services to individuals, businesses, municipal entities and not-for-profit organizations. Its deposit products include savings, money market and interest-bearing and interest-free checking accounts, as well as certificates of deposit. The Company’s loan portfolio includes consumer loans which include 1-4 family residential loans, home equity loans, home improvement loans, auto loans and other consumer loans. the consumption ; business 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 projects, commercial real estate loans and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth and trust management services including investment management, administration, revocable and testamentary trusts and custodial services for individuals, partnerships and corporations; safety deposit box services; and brokerage services. As of December 31, 2021, the company operated through 56 banking institutions and 73 ATMs/ITMs. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

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