Seacoast Banking Corporation of Florida (NASDAQ: SBCF) and Summit Financial Group (NASDAQ:SMMF) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

71.6% of Seacoast Banking Corporation of Florida shares are owned by institutional investors. Comparatively, 16.1% of Summit Financial Group shares are owned by institutional investors. 2.8% of Seacoast Banking Corporation of Florida shares are owned by insiders. Comparatively, 22.8% of Summit Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Seacoast Banking Corporation of Florida and Summit Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seacoast Banking Corporation of Florida $183.00 million 5.21 $33.40 million $0.86 28.55
Summit Financial Group $61.73 million 4.33 $13.54 million $1.09 19.74

Seacoast Banking Corporation of Florida has higher revenue and earnings than Summit Financial Group. Summit Financial Group 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.

Profitability

This table compares Seacoast Banking Corporation of Florida and Summit Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seacoast Banking Corporation of Florida 16.95% 9.11% 0.89%
Summit Financial Group 14.90% 11.49% 1.04%

Dividends

Summit Financial Group pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Seacoast Banking Corporation of Florida does not pay a dividend. Summit Financial Group pays out 40.4% of its earnings in the form of a dividend.

Risk & Volatility

Seacoast Banking Corporation of Florida has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Summit Financial Group has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Seacoast Banking Corporation of Florida and Summit Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seacoast Banking Corporation of Florida 0 2 6 0 2.75
Summit Financial Group 0 1 1 0 2.50

Seacoast Banking Corporation of Florida currently has a consensus price target of $21.75, indicating a potential downside of 11.41%. Summit Financial Group has a consensus price target of $24.50, indicating a potential upside of 13.85%. Given Summit Financial Group’s higher possible upside, analysts plainly believe Summit Financial Group is more favorable than Seacoast Banking Corporation of Florida.

Summary

Seacoast Banking Corporation of Florida beats Summit Financial Group on 9 of the 16 factors compared between the two stocks.

Seacoast Banking Corporation of Florida Company Profile

Seacoast Banking Corporation of Florida is a bank holding company. The Company’s principal subsidiary is Seacoast National Bank, a national banking association (the Bank). The Company and its subsidiaries offer an array of deposit accounts and retail banking services, engage in consumer and commercial lending and provide a range of trust and asset management services, as well as securities and annuity products to its customers. The Company, through its bank subsidiary, provides a range of community banking services to commercial, small business and retail customers, offering a range of transaction and savings deposit products, treasury management services, brokerage, and secured and unsecured loan products, including revolving credit facilities, letters of credit and similar financial guarantees, and asset based financing. The Bank also provides trust and investment management services to retirement plans, corporations and individuals.

Summit Financial Group Company Profile

Summit Financial Group, Inc. (Summit) is a financial holding company. The Company provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Shenandoah Valley, and Northern region of Virginia. The Company provides these services through its community bank subsidiary, Summit Community Bank (Summit Community or the Bank). The Company operates through two segments: community banking, and insurance & financial services. The community banking segment consists of its full service banks, which offer customers traditional banking products and services through various delivery channels. The insurance & financial services segment includes three insurance agency offices that sell insurance products. The Company also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia, which provides insurance brokerage services to individuals and businesses.

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