Contrasting Seacoast Banking Corporation of Florida (NASDAQ:SBCF) & Texas Community Bancshares (NASDAQ:TCBS)

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

Insider and Institutional Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. Comparatively, 81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. 15.3% of Texas Community Bancshares shares are held by insiders. Comparatively, 1.5% of Seacoast Banking Corporation of Florida shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Texas Community Bancshares and Seacoast Banking Corporation of Florida”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Community Bancshares	$25.57 million	1.97	$2.84 million	$1.09	16.00
Seacoast Banking Corporation of Florida	$935.52 million	3.45	$144.88 million	$1.52	21.86

Seacoast Banking Corporation of Florida has higher revenue and earnings than Texas Community Bancshares. Texas Community 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

Texas Community Bancshares has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500. Comparatively, Seacoast Banking Corporation of Florida has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Texas Community Bancshares and Seacoast Banking Corporation of Florida, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Community Bancshares	0	1	0	0	2.00
Seacoast Banking Corporation of Florida	0	2	3	0	2.60

Seacoast Banking Corporation of Florida has a consensus target price of $35.00, suggesting a potential upside of 5.33%. Given Seacoast Banking Corporation of Florida’s stronger consensus rating and higher probable upside, analysts clearly believe Seacoast Banking Corporation of Florida is more favorable than Texas Community Bancshares.

Profitability

This table compares Texas Community 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
Texas Community Bancshares	11.79%	5.66%	0.70%
Seacoast Banking Corporation of Florida	14.42%	8.23%	1.11%

Dividends

Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Seacoast Banking Corporation of Florida pays an annual dividend of $0.76 per share and has a dividend yield of 2.3%. Texas Community Bancshares pays out 22.0% of its earnings in the form of a dividend. Seacoast Banking Corporation of Florida pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Community Bancshares has increased its dividend for 1 consecutive years and Seacoast Banking Corporation of Florida has increased its dividend for 4 consecutive years. Seacoast Banking Corporation of Florida is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Seacoast Banking Corporation of Florida beats Texas Community Bancshares on 15 of the 17 factors compared between the two stocks.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, 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.