Financial Survey: BayFirst Financial (NASDAQ:BAFN) & Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

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

Insider and Institutional Ownership

81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. Comparatively, 16.9% of BayFirst Financial shares are held by institutional investors. 1.6% of Seacoast Banking Corporation of Florida shares are held by insiders. Comparatively, 18.8% of BayFirst Financial shares are held by 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.

Profitability

This table compares Seacoast Banking Corporation of Florida and BayFirst Financial’s 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%
BayFirst Financial	-20.99%	-26.38%	-1.73%

Volatility & Risk

Seacoast Banking Corporation of Florida has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, BayFirst Financial has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Earnings & Valuation

This table compares Seacoast Banking Corporation of Florida and BayFirst Financial”s gross 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	3.49	$144.88 million	$1.60	20.87
BayFirst Financial	$104.19 million	0.26	-$22.94 million	($5.91)	-1.13

Seacoast Banking Corporation of Florida has higher revenue and earnings than BayFirst Financial. BayFirst Financial 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Seacoast Banking Corporation of Florida and BayFirst Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seacoast Banking Corporation of Florida	0	5	2	0	2.29
BayFirst Financial	1	0	0	0	1.00

Seacoast Banking Corporation of Florida currently has a consensus target price of $31.90, indicating a potential downside of 4.46%. Given Seacoast Banking Corporation of Florida’s stronger consensus rating and higher possible upside, analysts clearly believe Seacoast Banking Corporation of Florida is more favorable than BayFirst Financial.

Summary

Seacoast Banking Corporation of Florida beats BayFirst Financial on 13 of the 14 factors compared between the two stocks.

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 BayFirst Financial

BayFirst Financial Corp. operates as the bank holding company for BayFirst National Bank that provides community banking services for businesses and individuals. The company offers checking, savings, NOW, and money market deposit accounts, as well as certificates of deposit and individual retirement account; and safety deposit boxes. It also provides commercial real estate mortgages; construction and development, working capital, and business loans; auto, boat, and recreational vehicle loans; and residential mortgages, personal lines of credit, and home equity lines of credit. In addition, the company offers mobile and online banking, treasury management, wire transfers, cash management, merchant processing, remote deposit capture, night depositor, online bill payment, courier, retail investment, ACH originations, and other services. It operates full-service banking centers in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, Belleair Bluffs, and Bradenton, Florida. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.