Seacoast Banking Corporation of Florida (NASDAQ:SBCF) vs. Simmons First National (NASDAQ:SFNC) Critical Survey

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) and Simmons First National (NASDAQ:SFNC) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Dividends

Seacoast Banking Corporation of Florida pays an annual dividend of $0.76 per share and has a dividend yield of 2.5%. Simmons First National pays an annual dividend of $0.86 per share and has a dividend yield of 4.0%. Seacoast Banking Corporation of Florida pays out 50.0% of its earnings in the form of a dividend. Simmons First National pays out -33.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Seacoast Banking Corporation of Florida has increased its dividend for 4 consecutive years and Simmons First National has increased its dividend for 14 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Seacoast Banking Corporation of Florida and Simmons First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seacoast Banking Corporation of Florida	14.42%	8.23%	1.11%
Simmons First National	-25.44%	7.81%	1.07%

Insider and Institutional Ownership

81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. Comparatively, 27.6% of Simmons First National shares are held by institutional investors. 1.5% of Seacoast Banking Corporation of Florida shares are held by insiders. Comparatively, 0.8% of Simmons First National shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Seacoast Banking Corporation of Florida has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Simmons First National has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Seacoast Banking Corporation of Florida and Simmons First National”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seacoast Banking Corporation of Florida	$935.52 million	3.14	$144.88 million	$1.52	19.85
Simmons First National	$1.43 billion	2.19	-$397.55 million	($2.56)	-8.41

Seacoast Banking Corporation of Florida has higher earnings, but lower revenue than Simmons First National. Simmons First National 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 Recommendations

This is a breakdown of recent recommendations for Seacoast Banking Corporation of Florida and Simmons First National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seacoast Banking Corporation of Florida	0	2	3	0	2.60
Simmons First National	0	5	2	2	2.67

Seacoast Banking Corporation of Florida currently has a consensus price target of $34.50, indicating a potential upside of 14.35%. Simmons First National has a consensus price target of $22.00, indicating a potential upside of 2.14%. Given Seacoast Banking Corporation of Florida’s higher possible upside, equities analysts plainly believe Seacoast Banking Corporation of Florida is more favorable than Simmons First National.

Summary

Seacoast Banking Corporation of Florida beats Simmons First National on 11 of the 18 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 Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.