Financial Contrast: Seacoast Banking Corporation of Florida (NASDAQ:SBCF) and Third Coast Bancshares (NASDAQ:TCBX)

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

Analyst Ratings

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

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

Seacoast Banking Corporation of Florida currently has a consensus target price of $31.90, suggesting a potential downside of 2.54%. Third Coast Bancshares has a consensus target price of $45.33, suggesting a potential upside of 7.66%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Third Coast Bancshares is more favorable than Seacoast Banking Corporation of Florida.

Valuation and Earnings

This table compares Seacoast Banking Corporation of Florida and Third Coast Bancshares”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 Corporation of Florida	$935.52 million	3.42	$144.88 million	$1.60	20.46
Third Coast Bancshares	$207.74 million	3.34	$47.67 million	$3.79	11.11

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.

Risk & Volatility

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

Profitability

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

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

Insider and Institutional Ownership

81.8% of Seacoast Banking Corporation of Florida shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 1.6% of Seacoast Banking Corporation of Florida shares are owned by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

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 an annual dividend of $16.87 per share and has a dividend yield of 40.1%. Seacoast Banking Corporation of Florida pays out 47.5% of its earnings in the form of a dividend. 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 has increased its dividend for 4 consecutive years.

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.

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.