Seacoast Banking Corporation of Florida (NASDAQ:SBCF) and Third Coast Bancshares (NASDAQ:TCBX) Critical Analysis

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

Dividends

Seacoast Banking Corporation of Florida pays an annual dividend of $0.76 per share and has a dividend yield of 2.4%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 41.6%. 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.

Earnings & Valuation

This table compares Seacoast Banking Corporation of Florida and Third Coast Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seacoast Banking Corporation of Florida	$935.52 million	3.35	$144.88 million	$1.60	20.03
Third Coast Bancshares	$207.74 million	3.23	$47.67 million	$3.79	10.70

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.

Volatility and Risk

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

Institutional & Insider Ownership

81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 1.5% of Seacoast Banking Corporation of Florida shares are held by insiders. Comparatively, 10.3% of Third Coast Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown 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 price target of $31.90, suggesting a potential downside of 0.47%. Third Coast Bancshares has a consensus price target of $45.33, suggesting a potential upside of 11.75%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Third Coast Bancshares is more favorable than Seacoast Banking Corporation of Florida.

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.