Analyzing Intercorp Financial Services (NYSE:IFS) and Summit State Bank (NASDAQ:SSBI)

Intercorp Financial Services (NYSE:IFS) and Summit State Bank (NASDAQ:SSBI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Dividends

Intercorp Financial Services pays an annual dividend of $0.95 per share and has a dividend yield of 3.3%. Summit State Bank pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. Intercorp Financial Services pays out 37.3% of its earnings in the form of a dividend. Summit State Bank pays out 22.2% 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.

Volatility and Risk

Intercorp Financial Services has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares Intercorp Financial Services and Summit State Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercorp Financial Services	$1.63 billion	N/A	$286.85 million	$2.55	11.43
Summit State Bank	$65.44 million	N/A	$10.82 million	$0.72	9.83

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

Profitability

This table compares Intercorp Financial Services and Summit State Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intercorp Financial Services	18.00%	10.67%	1.18%
Summit State Bank	7.83%	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Intercorp Financial Services and Summit State Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intercorp Financial Services	0	0	1	0	3.00
Summit State Bank	0	0	0	0	0.00

Intercorp Financial Services currently has a consensus price target of $30.00, indicating a potential upside of 2.90%. Given Intercorp Financial Services’ stronger consensus rating and higher probable upside, equities analysts clearly believe Intercorp Financial Services is more favorable than Summit State Bank.

Summary

Intercorp Financial Services beats Summit State Bank on 12 of the 13 factors compared between the two stocks.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.