Head to Head Analysis: Seacoast Banking Co. of Florida (SBCF) versus Great Western Bancorp (GWB)

Seacoast Banking Co. of Florida (NASDAQ: SBCF) and Great Western Bancorp (NYSE:GWB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider and Institutional Ownership

82.9% of Seacoast Banking Co. of Florida shares are owned by institutional investors. 3.0% of Seacoast Banking Co. of Florida shares are owned by insiders. Comparatively, 0.3% of Great Western Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seacoast Banking Co. of Florida $250.07 million 6.17 $42.86 million $1.28 25.66
Great Western Bancorp $497.73 million 5.23 $144.78 million $2.46 17.95

Great Western Bancorp has higher revenue and earnings than Seacoast Banking Co. of Florida. Great Western Bancorp 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.

Dividends

Great Western Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Seacoast Banking Co. of Florida does not pay a dividend. Great Western Bancorp pays out 40.7% of its earnings in the form of a dividend. Great Western Bancorp has raised its dividend for 2 consecutive years.

Risk and Volatility

Seacoast Banking Co. of Florida has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Great Western Bancorp has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Seacoast Banking Co. of Florida and Great Western Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seacoast Banking Co. of Florida 0 3 3 0 2.50
Great Western Bancorp 0 3 5 0 2.63

Seacoast Banking Co. of Florida presently has a consensus target price of $29.00, indicating a potential downside of 11.72%. Great Western Bancorp has a consensus target price of $46.00, indicating a potential upside of 4.17%. Given Great Western Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Great Western Bancorp is more favorable than Seacoast Banking Co. of Florida.

Profitability

This table compares Seacoast Banking Co. of Florida and Great Western Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seacoast Banking Co. of Florida 19.83% 10.05% 1.15%
Great Western Bancorp 27.33% 8.86% 1.33%

Summary

Great Western Bancorp beats Seacoast Banking Co. of Florida on 11 of the 17 factors compared between the two stocks.

About Seacoast Banking Co. of Florida

Seacoast Banking Corporation of Florida operates as the bank holding company for Seacoast National Bank that provides financial services to business and retail customers in Florida. It offers commercial and retail banking, wealth management, and mortgage services; automated teller machines; online and mobile banking services; and brokerage and annuity services. As of March 1, 2018, it had 51 traditional branches and 5 commercial banking centers. The company was founded in 1926 and is headquartered in Stuart, Florida.

About Great Western Bancorp

Great Western Bancorp, Inc. operates as the bank holding company for Great Western Bank that provides business and agribusiness banking, retail banking, and wealth management services. The company offers non-interest-bearing demand accounts, interest-bearing savings and money market accounts, individual retirement accounts, and time certificates of deposits, as well as NOW accounts. It also provides agricultural loans; commercial and industrial loans, including working capital and other shorter-term lines of credit, fixed-rate and variable rate loans; commercial real estate (CRE) loans comprising owner-occupied and non-owner-occupied CRE loans, multifamily residential real estate loans, and construction and development loans; short-term working capital funding, long-term land-related lending, and other tailored services; and residential mortgage, home equity, home equity lines of credit and general lines of credit, and auto loans and other loans. In addition, the company offers cash management services, online business deposit, and wire transfer services; credit cards; crop insurance; online, telephone, and mobile banking services; and wealth management solutions consisting of financial planning, private banking, investment management, and trust services through associations with third party vendors, including a registered broker-dealer and investment adviser. It serves retail customers; grain and protein producers; and small and mid-sized businesses in various industries, including ancillary agribusiness services, freight and transport, healthcare, and tourism. As of September 30, 2017, the company's branch network consisted of 173 branches located in 129 communities in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, as well as operated 162 ATMs and 21 company-owned ATMs at off-site locations. The company was founded in 1935 and is based in Sioux Falls, South Dakota.

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