Bridge Bancorp (NASDAQ: BDGE) and Seacoast Banking Corporation of Florida (NASDAQ:SBCF) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

56.8% of Bridge Bancorp shares are held by institutional investors. Comparatively, 79.5% of Seacoast Banking Corporation of Florida shares are held by institutional investors. 5.3% of Bridge Bancorp shares are held by company insiders. Comparatively, 2.8% of Seacoast Banking Corporation of Florida shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Bridge Bancorp and Seacoast Banking Corporation of Florida’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridge Bancorp $153.76 million 4.77 $35.49 million $1.90 19.58
Seacoast Banking Corporation of Florida $185.85 million 6.28 $29.20 million $0.98 27.37

Bridge Bancorp has higher earnings, but lower revenue than Seacoast Banking Corporation of Florida. Bridge Bancorp 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.

Profitability

This table compares Bridge Bancorp and Seacoast Banking Corporation of Florida’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Bancorp 22.62% 8.52% 0.88%
Seacoast Banking Corporation of Florida 18.48% 9.37% 0.98%

Analyst Ratings

This is a breakdown of current recommendations for Bridge Bancorp and Seacoast Banking Corporation of Florida, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Bancorp 0 1 1 0 2.50
Seacoast Banking Corporation of Florida 0 2 4 0 2.67

Bridge Bancorp currently has a consensus price target of $40.75, suggesting a potential upside of 9.54%. Seacoast Banking Corporation of Florida has a consensus price target of $27.50, suggesting a potential upside of 2.54%. Given Bridge Bancorp’s higher possible upside, research analysts clearly believe Bridge Bancorp is more favorable than Seacoast Banking Corporation of Florida.

Dividends

Bridge Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Seacoast Banking Corporation of Florida does not pay a dividend. Bridge Bancorp pays out 48.4% of its earnings in the form of a dividend.

Risk and Volatility

Bridge Bancorp has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Seacoast Banking Corporation of Florida has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

Seacoast Banking Corporation of Florida beats Bridge Bancorp on 10 of the 16 factors compared between the two stocks.

About Bridge Bancorp

Bridge Bancorp, Inc. is a bank holding company for The Bridgehampton National Bank (the Bank). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc. (BCI), a financial title insurance subsidiary, Bridge Abstract LLC (Bridge Abstract), and an investment services subsidiary, Bridge Financial Services LLC (Bridge Financial Services). As of December 31, 2016, the Bank operated 40 branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs, including 38 in Suffolk and Nassau Counties, one in Bayside, Queens and one in Manhattan. The Bank engages in full service commercial and consumer banking business, including accepting time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. The Bank also offers the Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) programs.

About Seacoast Banking Corporation of Florida

Seacoast Banking Corporation of Florida is a bank holding company. The Company’s principal subsidiary is Seacoast National Bank, a national banking association (the Bank). The Company and its subsidiaries offer an array of deposit accounts and retail banking services, engage in consumer and commercial lending and provide a range of trust and asset management services, as well as securities and annuity products to its customers. The Company, through its bank subsidiary, provides a range of community banking services to commercial, small business and retail customers, offering a range of transaction and savings deposit products, treasury management services, brokerage, and secured and unsecured loan products, including revolving credit facilities, letters of credit and similar financial guarantees, and asset based financing. The Bank also provides trust and investment management services to retirement plans, corporations and individuals.

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