Franklin Financial Network (NYSE:FSB) vs. Seacoast Commerce Banc (NYSE:SCBH) Critical Comparison

Franklin Financial Network (NYSE:FSB) and Seacoast Commerce Banc (OTCMKTS:SCBH) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Valuation and Earnings

This table compares Franklin Financial Network and Seacoast Commerce Banc’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin Financial Network $202.65 million 2.25 $14.81 million $2.16 14.11
Seacoast Commerce Banc $73.59 million 2.00 $14.59 million N/A N/A

Franklin Financial Network has higher revenue and earnings than Seacoast Commerce Banc.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Franklin Financial Network and Seacoast Commerce Banc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Financial Network 0 2 1 0 2.33
Seacoast Commerce Banc 0 0 0 0 N/A

Franklin Financial Network currently has a consensus target price of $36.50, indicating a potential upside of 19.75%. Given Franklin Financial Network’s higher probable upside, equities analysts plainly believe Franklin Financial Network is more favorable than Seacoast Commerce Banc.

Profitability

This table compares Franklin Financial Network and Seacoast Commerce Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Financial Network 15.25% 7.53% 0.81%
Seacoast Commerce Banc N/A N/A N/A

Volatility & Risk

Franklin Financial Network has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Seacoast Commerce Banc has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Insider and Institutional Ownership

63.9% of Franklin Financial Network shares are held by institutional investors. Comparatively, 2.8% of Seacoast Commerce Banc shares are held by institutional investors. 11.7% of Franklin Financial Network shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Franklin Financial Network pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Seacoast Commerce Banc pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Franklin Financial Network pays out 11.1% of its earnings in the form of a dividend. Franklin Financial Network has raised its dividend for 1 consecutive years.

Summary

Franklin Financial Network beats Seacoast Commerce Banc on 12 of the 14 factors compared between the two stocks.

Franklin Financial Network Company Profile

Franklin Financial Network, Inc. operates as the bank holding company for Franklin Synergy Bank that provides banking and related financial services to small businesses, corporate entities, local governments, and individuals. Its deposit products include checking, savings, and certificate of deposit accounts; and demand deposits, interest-bearing transaction accounts, money market accounts, and municipal deposits. The company also provides construction and land development, commercial real estate, residential real estate, commercial and industrial, and consumer and other loans. In addition, it offers retirement planning, financial planning, and investment services, as well as insurance products; and Internet banking, remote deposit capture, lockbox, and treasury management services. The company operates through 15 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area. Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee.

Seacoast Commerce Banc Company Profile

Seacoast Commerce Banc Holdings operates as a bank holding company for Seacoast Commerce Bank that provides various banking products and services principally to small and middle market businesses and individuals in California. Its deposits products include checking, investors' money market, basic money market, and regular savings accounts, as well as certificates of deposit. The company's loan portfolio comprises various loans and lines of credit, as well as small business administration financing. It also provides cash management, remote deposit capture, and lockbox processing services; online banking services; and wire transfers, cashier's checks, ATM and mail banking services, and safe deposit boxes. In addition, the company offers property management and homeowner association banking solutions, such as analysis banking, reserve investment accounts, deposit account services, online cash management, remittance and coupon processing, online ACH and credit card payment systems, data file preparation and integration, loans for associations, and electronic delivery services, as well as exchange services. It operates two full service branches in Chula Vista and San Diego, California under the Seacoast Commerce Bank name. The company was founded in 2014 and is headquartered in San Diego, California.

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