Southside Bancshares vs Eagle Point Credit

This page compares Southside Bancshares and Eagle Point Credit Co Inc, examining business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SBSI

Metric

ECC

$957.31M

Market Cap

$743.13M

-4.45%

Potential Profit

27.01%

Hold

Analyst Rating

Buy

Investment Analysis

Southside Bancshares

SBSI

Pros

Southside Bancshares has a stable stock price around $28, indicating consistent market confidence.
Strong regional banking presence supports a solid customer base and steady deposit growth.
Effective risk management and credit quality have contributed to resilient financial performance.

Considerations

Slight recent price decline might indicate near-term market uncertainty or sector headwinds.
Exposure to regional economic fluctuations could impact loan demand and asset quality.
Competition from larger banks and fintech firms may pressure margins and growth potential.

Eagle Point Credit

ECC

Pros

Eagle Point Credit offers a high dividend yield around 26%, attractive for income-focused investors.
Portfolio focuses on junior debt tranches of collateralized loan obligations, providing higher risk-adjusted returns.
Trades at a price-to-book ratio below 1, suggesting potential undervaluation relative to assets.

Considerations

Share price has experienced ongoing declines and volatility, reflecting market uncertainty around CLO exposure.
High P/E ratio relative to financial sector peers indicates potentially stretched valuation.
Exposure to below investment grade loans increases credit risk, especially in an economic downturn.

About The Companies

Southside Bancshares (SBSI)

Southside Bancshares, Inc. operates as the bank holding company for Southside Bank, a community-focused financial institution in the United States. It provides a comprehensive suite of financial services to individuals, businesses, municipal bodies, and non-profit organisations. The company's offerings are diverse, spanning consumer services like residential and home equity loans, and commercial services including commercial real estate financing. It also features a wealth management and trust division, which handles investment management and administration services for its clients. With a network of approximately 53 branches, some conveniently located in grocery stores, Southside Bancshares aims to be an accessible financial partner in the communities it serves. As with any investment, it's important to consider that the value can go down as well as up, and returns are not guaranteed.

Eagle Point Credit (ECC)

Eagle Point Credit Company Inc. is a specialised investment firm that operates as a non-diversified, closed-end management investment company. Its primary objective is to generate high current income for investors, with a secondary goal of achieving capital appreciation. The company achieves this by investing mainly in the equity and junior debt tranches of Collateralised Loan Obligations (CLOs). These CLOs are complex financial instruments backed by a diverse portfolio of below-investment-grade senior secured loans from U.S. companies across various sectors, including technology, healthcare, and financial services. By focusing on these specific slices of CLOs, Eagle Point aims to capture potentially higher yields, though this strategy also involves specific risks associated with the underlying loans. This approach may be of interest to investors looking for income-focused opportunities, with an understanding that the value of such investments can fluctuate.

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Southside Bancshares vs Eagle Point Credit

Comparison Snapshot

Investment Analysis

Southside Bancshares

Pros

Considerations

Eagle Point Credit

Pros

Considerations

About The Companies

Buy SBSI or ECC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

Southside Bancshares vs Eagle Point Credit

Comparison Snapshot

Investment Analysis

Southside Bancshares

Pros

Considerations

Eagle Point Credit

Pros

Considerations

About The Companies

Buy SBSI or ECC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Southside Bancshares vs Amalgamated Financial

Southside Bancshares vs SLR Investment

Southside Bancshares vs LexinFintech

Frequently asked questions

What does it mean when a stock price is described as 'stable' in a comparison like this?

How should I interpret 'dividend yield' versus 'price-to-book' in this comparison?

What is meant by 'exposure to regional economic fluctuations' for a bank-heavy stock like Southside Bancshares?

What should I consider when a stock shows a high dividend yield versus a high P/E ratio?

How does 'below 1x price-to-book' influence my view of Eagle Point Credit’s valuation?

What risks should I weigh with a focus on CLO exposure in Eagle Point Credit?

How might broader financial sector conditions influence both stocks in this comparison?

What does it mean if a stock trades at a discount to its peers due to sector headwinds?

How should I approach using this page as a learning tool, not as financial advice?

What is the importance of considering both business models when reading this comparison?

What does a 'neutral, educational' introduction imply for readers new to stock comparisons?

Comparison Snapshot

About The Companies