Financial Analysis: Third Coast Bancshares (NASDAQ:TCBX) versus Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

Third Coast Bancshares (NASDAQ:TCBX) and Seacoast Banking Corporation of Florida (NASDAQ:SBCF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Third Coast Bancshares and Seacoast Banking Corporation of Florida, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	2	3	0	2.60
Seacoast Banking Corporation of Florida	0	4	3	0	2.43

Third Coast Bancshares presently has a consensus target price of $45.33, suggesting a potential upside of 8.63%. Seacoast Banking Corporation of Florida has a consensus target price of $31.90, suggesting a potential downside of 2.36%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Third Coast Bancshares is more favorable than Seacoast Banking Corporation of Florida.

Profitability

This table compares Third Coast Bancshares and Seacoast Banking Corporation of Florida’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
Seacoast Banking Corporation of Florida	15.47%	7.07%	0.98%

Valuation & Earnings

This table compares Third Coast Bancshares and Seacoast Banking Corporation 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
Third Coast Bancshares	$207.74 million	3.31	$47.67 million	$3.79	11.01
Seacoast Banking Corporation of Florida	$935.52 million	3.41	$144.88 million	$1.60	20.42

Seacoast Banking Corporation of Florida has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than Seacoast Banking Corporation of Florida, indicating that it is currently the more affordable of the two stocks.

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 40.4%. Seacoast Banking Corporation of Florida pays an annual dividend of $0.76 per share and has a dividend yield of 2.3%. Third Coast Bancshares pays out 445.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seacoast Banking Corporation of Florida pays out 47.5% of its earnings in the form of a dividend. Seacoast Banking Corporation of Florida has increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. 10.3% of Third Coast Bancshares shares are held by company insiders. Comparatively, 1.5% of Seacoast Banking Corporation of Florida shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Third Coast Bancshares has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Seacoast Banking Corporation of Florida has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.

About Seacoast Banking Corporation of Florida

Seacoast Banking Corp. of Florida is a financial holding company, which engages in the provision of integrated financial services. It provides banking and investment services to businesses and consumers, including personal and business deposit products, Internet and mobile banking, personal, commercial and mortgage loans, wealth management services, and treasury management solutions. The company was founded in 1983 and is headquartered in Stuart, FL.