Head to Head Analysis: Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Touchstone Bankshares (OTCMKTS:TSBA)

Touchstone Bankshares (OTCMKTS:TSBAGet Rating) and Seacoast Banking Co. of Florida (NASDAQ:SBCFGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Valuation & Earnings

This table compares Touchstone Bankshares and Seacoast Banking Co. of Florida’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Touchstone Bankshares 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 revenue and earnings than Touchstone Bankshares. Touchstone Bankshares is trading at a lower price-to-earnings ratio than Seacoast Banking Co. of Florida, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

79.9% of Seacoast Banking Co. of Florida shares are owned by institutional investors. 2.0% of Seacoast Banking Co. of Florida shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Touchstone Bankshares and Seacoast Banking Co. of Florida’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Touchstone Bankshares 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 that its share price is 45% less volatile than the S&P 500. Comparatively, Seacoast Banking Co. of Florida has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Touchstone Bankshares and Seacoast Banking Co. of Florida, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Touchstone Bankshares 0 0 0 0 N/A
Seacoast Banking Co. of Florida 0 2 1 0 2.33

Seacoast Banking Co. of Florida has a consensus price target of $37.50, suggesting a potential upside of 15.74%. Given Seacoast Banking Co. of Florida’s higher probable upside, analysts clearly believe Seacoast Banking Co. of Florida is more favorable than Touchstone Bankshares.

Dividends

Touchstone Bankshares pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Seacoast Banking Co. of Florida 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 earnings in the form of a dividend. Seacoast Banking Co. of Florida 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 the next several years. Seacoast Banking Co. of Florida has increased its dividend for 2 consecutive years. Touchstone Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Seacoast Banking Co. of Florida beats Touchstone Bankshares on 13 of the 15 factors compared between the two stocks.

About Touchstone Bankshares (Get Rating)

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, business term, operating capital, and construction loans, as well as business lines of credit. In addition, the company offers online and mobile banking, card, treasury, and financial planning services. It has 13 branches 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. of Florida (Get Rating)

Seacoast Banking Corporation of Florida operates as the bank holding company for Seacoast National Bank that provides financial services to retail and commercial customers in Florida. It offers commercial and retail banking, wealth management, and mortgage services; and brokerage and annuity services. The company offers noninterest and interest-bearing demand deposit, money market, savings, and customer sweep accounts; time certificates of deposit; construction and land development, commercial and residential real estate, and commercial and financial loans; and consumer loans, 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 branch and commercial lending offices. The company was founded in 1926 and is headquartered in Stuart, Florida.

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