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


Touchstone Bank Stock (OTCMKTS: TSBAGet a rating) and Seacoast Banking Co. of Florida (NASDAQ: SBCFGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Touchstone Bankshares and Seacoast Banking Co. of Florida.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Touchstone Bank Stocks N / A N / A $3.91 million $1.24 9:15 a.m.
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 profit than Touchstone Bankshares. Touchstone Bankshares trades 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 the shares of Seacoast Banking Co. of Florida are held by institutional investors. 2.0% of the shares of Seacoast Banking Co. of Florida are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Profitability

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

Net margins Return on equity return on assets
Touchstone Bank Stocks N / A N / A N / A
Seacoast Banking Co. of Florida 30.77% 9.85% 1.27%

Volatility and risk

Touchstone Bankshares has a beta of 0.55, which means its stock price is 45% less volatile than the S&P 500. Comparatively, Seacoast Banking Co. of Florida has a beta of 1.17, which means its price is 17% more volatile than the S&P. 500.

Analyst Recommendations

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

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Touchstone Bank Stocks 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 Florida’s Seacoast Banking Co.’s likely higher upside, analysts clearly believe Florida’s Seacoast Banking Co. 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 24.2% of its profits as a dividend. Seacoast Banking Co. of Florida pays 27.2% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Seacoast Banking Co. of Florida has increased its dividend for 2 consecutive years. Touchstone Bankshares is clearly the best dividend stock, given its higher yield and lower payout ratio.

Summary

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

About Touchstone Bankshares (Get a rating)

Touchstone Bankshares, Inc. operates as a bank holding company for Touchstone Bank which provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also offers mortgages, home loans, auto loans, and personal term loans; personal lines of credit; and business loans including commercial real estate, term loans, working capital and construction loans, as well as business lines of credit. Additionally, the company offers online and mobile banking, cards, cash and financial planning. It has 13 branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is based in Prince George, Virginia.

About Seacoast Banking Co. of Florida (Get a rating)

Seacoast Banking Corporation of Florida operates as a bank holding company for Seacoast National Bank which provides financial services to retail and commercial customers in Florida. It offers commercial and retail banking, wealth management and mortgages; and brokerage and annuity services. The company offers interest-free and interest-bearing demand deposit, money market, savings and customer swipe accounts; term deposit certificates; 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 for personal or family purposes. As of December 31, 2021, it had 54 branches and commercial loan offices. The company was founded in 1926 and is based in Stuart, Florida.



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