Webster Financial (NYSE:WBS) versus SouthCrest Financial Group (OTCMKTS:SCSG) Critical Survey

Webster Financial (NYSE:WBSGet Rating) and SouthCrest Financial Group (OTCMKTS:SCSGGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Webster Financial and SouthCrest Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Webster Financial 0 3 2 1 2.67
SouthCrest Financial Group 0 0 0 0 N/A

Webster Financial currently has a consensus price target of $61.25, suggesting a potential upside of 33.18%. Given Webster Financial’s higher probable upside, analysts clearly believe Webster Financial is more favorable than SouthCrest Financial Group.

Valuation and Earnings

This table compares Webster Financial and SouthCrest Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Webster Financial $1.27 billion 6.39 $408.86 million $3.09 14.88
SouthCrest Financial Group N/A N/A N/A N/A N/A

Webster Financial has higher revenue and earnings than SouthCrest Financial Group.

Profitability

This table compares Webster Financial and SouthCrest Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Webster Financial 20.70% 11.53% 1.26%
SouthCrest Financial Group N/A N/A N/A

Insider and Institutional Ownership

86.0% of Webster Financial shares are owned by institutional investors. 1.9% of Webster Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Webster Financial beats SouthCrest Financial Group on 9 of the 9 factors compared between the two stocks.

About Webster Financial

(Get Rating)

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of banking, investment, and financial services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Retail Banking. The Commercial Banking segment provides lending, deposit, and cash management services; commercial and industrial lending and leasing, commercial real estate lending, equipment financing, and asset-based lending, as well as treasury and payment services; wealth management solutions to business owners, operators, and consumers; and trust, asset management, financial planning, insurance, retirement, and investment products. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, consultants, and financial advisors. The Retail Banking segment provides deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers. The company also offers online and mobile banking services. As of December 31, 2021, it operated 130 banking centers and 251 ATMs. The company was founded in 1935 and is headquartered in Stamford, Connecticut.

About SouthCrest Financial Group

(Get Rating)

SouthCrest Financial Group, Inc. operates as the bank holding company for SouthCrest Bank, N.A. that provides various banking products and services. It offers checking, savings, and money market accounts; and certificates of deposit. The company also provides personal loans for cars, boats, recreational vehicles, and other purchases; home equity lines of credit; loans on investment properties; owner occupied real estate, acquisition construction and development, professional practice acquisition, equipment and inventory, construction to permanent, and investment real estate loans; and working capital and lines of credit. In addition, it offers credit cards; remote deposit capture, positive pay, ACH, online wires, merchant, and reorder checks services; and online banking, online bill pay, mobile banking and deposit, and telephone banking services. The company serves retail, private, entrepreneurial, high-net-worth, and commercial customers. It operates through 9 branches in Georgia. SouthCrest Financial Group, Inc. was founded in 1910 and is headquartered in Atlanta, Georgia.

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