Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Orrstown Financial Services (NASDAQ:ORRF) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
This table compares Seacoast Banking Co. of Florida and Orrstown Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seacoast Banking Co. of Florida||22.30%||10.20%||1.23%|
|Orrstown Financial Services||14.34%||9.89%||0.87%|
This is a summary of recent ratings and price targets for Seacoast Banking Co. of Florida and Orrstown Financial Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seacoast Banking Co. of Florida||0||3||2||0||2.40|
|Orrstown Financial Services||0||0||3||0||3.00|
Seacoast Banking Co. of Florida presently has a consensus price target of $31.75, indicating a potential upside of 20.54%. Orrstown Financial Services has a consensus price target of $29.00, indicating a potential upside of 34.63%. Given Orrstown Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe Orrstown Financial Services is more favorable than Seacoast Banking Co. of Florida.
Orrstown Financial Services pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Seacoast Banking Co. of Florida does not pay a dividend. Orrstown Financial Services pays out 40.0% of its earnings in the form of a dividend. Orrstown Financial Services has increased its dividend for 2 consecutive years.
Volatility and Risk
Seacoast Banking Co. of Florida has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Orrstown Financial Services has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Seacoast Banking Co. of Florida and Orrstown Financial Services’ gross 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||4.97||$42.86 million||$1.28||20.58|
|Orrstown Financial Services||$71.40 million||2.53||$8.09 million||$1.30||16.57|
Seacoast Banking Co. of Florida has higher revenue and earnings than Orrstown Financial Services. Orrstown Financial Services 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.
Institutional & Insider Ownership
84.3% of Seacoast Banking Co. of Florida shares are held by institutional investors. Comparatively, 41.9% of Orrstown Financial Services shares are held by institutional investors. 3.0% of Seacoast Banking Co. of Florida shares are held by insiders. Comparatively, 5.7% of Orrstown Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Seacoast Banking Co. of Florida beats Orrstown Financial Services on 10 of the 17 factors compared between the two stocks.
Seacoast Banking Co. of Florida Company Profile
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.
Orrstown Financial Services Company Profile
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, working capital, and other commercial purpose loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agribusiness loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as provides other fiduciary services under the Orrstown Financial Advisors name; and offers retail brokerage services through a third-party broker/dealer arrangement. Further, it offers investment advisory services through an office in Lancaster County, Pennsylvania. The company provides its banking and bank-related services through branches located in Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry counties of Pennsylvania, as well as Washington County, Maryland. Orrstown Financial Services, Inc. was founded in 1919 and is headquartered in Shippensburg, Pennsylvania.
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