Head-to-Head Analysis: Florida-based Seacoast Banking Co. (NASDAQ:SBCF) and Touchstone Bankshares (OTCMKTS:TSBA)
Touchstone Bank Stocks (OTCMKTS:TSBA – received rating) and Seacoast Banking Co. of Florida (NASDAQ:SBCF – received rating) are both small-cap financial companies, but which is the better investment? We will compare the two companies based on their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation, and dividends.
Rating & Result
This table compares the revenue, earnings per share (EPS) and valuation of Florida-based Touchstone Bankshares and Seacoast Banking Co.
|gross receipts||price/sales ratio||net income||earnings per share||price-earnings ratio|
|Touchstone Bank Stocks||N / A||N / A||$3.91 million||$1.24||9.15|
|Seacoast Banking Co. of Florida||$354.97 million||5.59||$124.40 million||$1.91||16.96|
Seacoast Banking Co. of Florida has higher revenues and profits than Touchstone Bankshares. Touchstone Bankshares is trading at a lower price-to-earnings multiple than Florida-based Seacoast Banking Co., suggesting it’s the cheaper of the two stocks at the moment.
Institutional and Insider Ownership
79.9% of the shares of Seacoast Banking Co. from Florida are owned by institutional investors. 2.0% of shares in Florida-based Seacoast Banking Co. are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments, and large wealth managers believe a company is poised for long-term growth.
This table compares the net margins, return on equity, and return on total assets for Touchstone Bankshares and Seacoast Banking Co. of Florida.
|net margins||return on equity||return on investment|
|Touchstone Bank Stocks||N / A||N / A||N / A|
|Seacoast Banking Co. of Florida||30.77%||9.85%||1.27%|
Volatility & Risk
Touchstone Bankshares has a beta of 0.55, meaning its stock price is 45% less volatile than the S&P 500. In comparison, Florida-based Seacoast Banking Co. has a beta of 1.17, meaning its stock price is 17% less volatile % more volatile than the S&P 500.
This is a summary of the latest ratings and price targets for Touchstone Bankshares and Seacoast Banking Co. of Florida as provided by MarketBeat.
|sell reviews||keep ratings||Buy reviews||Strong buy recommendations||rating score|
|Touchstone Bank Stocks||0||0||0||0||N / A|
|Seacoast Banking Co. of Florida||0||2||1||0||2.33|
Florida-based Seacoast Banking Co. has a consensus price target of $37.50, which suggests a potential upside of 15.74%. Given the more likely upside potential of Florida-based Seacoast Banking Co., analysts clearly believe Florida-based Seacoast Banking Co. is cheaper than Touchstone Bankshares.
Touchstone Bankshares pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Florida-based Seacoast Banking Co. pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Touchstone Bankshares pays out 24.2% of its profits in the form of a dividend. Florida-based Seacoast Banking Co. pays out 27.2% 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 years to come. Florida-based Seacoast Banking Co. has increased its dividend for two straight years. Touchstone Bankshares is clearly the better dividend stock due to its higher yield and lower payout ratio.
Florida-based Seacoast Banking Co. beats Touchstone Bankshares on 13 of the 15 factors comparing the two stocks.
About Touchstone Bankshares (received rating)
Touchstone Bankshares, Inc. acts as the bank holding company for Touchstone Bank, which provides various community banking products and services throughout the United States. The company offers personal and business savings and checking accounts. It also offers mortgage loans, home equity, auto and personal term loans; personal lines of credit; and business loans, which include commercial real estate, business tenure, working capital and home loans, and business lines of credit. In addition, the company offers online and mobile banking, cards, treasury and financial planning services. It has 13 offices in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.
About Seacoast Banking Co. from Florida (received rating)
Seacoast Banking Corporation of Florida functions as the bank holding company of Seacoast National Bank, which provides financial services to Florida consumers and businesses. It offers commercial and retail banking, wealth management and mortgage services; and brokerage and pension services. The Company offers interest-free and interest-bearing demand, money market, savings and customer sweep accounts; time deposit certificates; construction and property development, commercial and residential real estate and commercial and financial loans; and consumer credit, including installment loans and revolving lines, as well as loans for automobiles, boats, and personal or family purposes. As of December 31, 2021, it had 54 branches and commercial credit bureaus. The company was founded in 1926 and is headquartered in Stuart, Florida.
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