Critical Contrast: SVB Financial Group (OTCMKTS:SIVBQ) & Cadence Bank (NYSE:CADE)

Cadence Bank (NYSE:CADE) and SVB Financial Group (OTCMKTS:SIVBQ) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

84.6% of Cadence Bank shares are owned by institutional investors. Comparatively, 8.7% of SVB Financial Group shares are owned by institutional investors. 2.2% of Cadence Bank shares are owned by insiders. Comparatively, 0.6% of SVB Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cadence Bank and SVB Financial Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$921.95 million	6.17	$542.30 million	$3.13	9.98
SVB Financial Group	$7.40 billion	0.00	$1.67 billion	N/A	N/A

SVB Financial Group has higher revenue and earnings than Cadence Bank.

Profitability

This table compares Cadence Bank and SVB Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	24.42%	8.82%	0.88%
SVB Financial Group	N/A	N/A	N/A

Volatility & Risk

Cadence Bank has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, SVB Financial Group has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Cadence Bank and SVB Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	5	6	1	2.67
SVB Financial Group	0	0	0	0	N/A

Cadence Bank currently has a consensus target price of $34.88, suggesting a potential upside of 11.64%. Given Cadence Bank’s higher possible upside, research analysts clearly believe Cadence Bank is more favorable than SVB Financial Group.

Summary

Cadence Bank beats SVB Financial Group on 10 of the 12 factors compared between the two stocks.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company's products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

About SVB Financial Group

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. The Silicon Valley Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services. This segment also offers traditional term, growth capital term, and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities, and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts; receivables services, which include merchant services, remote capture, lockbox, and fraud control services; wire transfer and automated clearing house payment services; business bill pay, credit and debit cards, account analysis, and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions. The SVB Private segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services; and real estate secured loans. The SVB Capital segment provides venture capital investment services. The SVB Securities segment provides investment banking services; products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading. The company was founded in 1983 and is headquartered in Santa Clara, California. On March 17, 2023, SVB Financial Group, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.