Texas Community Bancshares (NASDAQ:TCBS) & Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Financial Comparison

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

Dividends

Seacoast Banking Corporation of Florida pays an annual dividend of $0.76 per share and has a dividend yield of 2.4%. Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Seacoast Banking Corporation of Florida pays out 50.0% of its earnings in the form of a dividend. Texas Community Bancshares pays out 22.0% 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 Texas Community Bancshares has increased its dividend for 1 consecutive years. Seacoast Banking Corporation of Florida is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Seacoast Banking Corporation of Florida has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Texas Community Bancshares has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500.

Profitability

This table compares Seacoast Banking Corporation of Florida and Texas Community Bancshares’ 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%
Texas Community Bancshares	11.79%	5.66%	0.70%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Seacoast Banking Corporation of Florida and Texas Community Bancshares, as reported 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
Texas Community Bancshares	0	1	0	0	2.00

Seacoast Banking Corporation of Florida presently has a consensus target price of $35.00, indicating a potential upside of 9.89%. Given Seacoast Banking Corporation of Florida’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Seacoast Banking Corporation of Florida is more favorable than Texas Community Bancshares.

Earnings & Valuation

This table compares Seacoast Banking Corporation of Florida and Texas Community Bancshares”s top-line 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	3.31	$144.88 million	$1.52	20.95
Texas Community Bancshares	$25.57 million	2.02	$2.84 million	$1.09	16.41

Seacoast Banking Corporation of Florida has higher revenue and earnings than Texas Community Bancshares. Texas Community 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.

Insider & Institutional Ownership

81.8% of Seacoast Banking Corporation of Florida shares are held by institutional investors. Comparatively, 15.8% of Texas Community Bancshares shares are held by institutional investors. 1.5% of Seacoast Banking Corporation of Florida shares are held by insiders. Comparatively, 15.3% of Texas Community Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Seacoast Banking Corporation of Florida beats Texas Community Bancshares on 15 of the 17 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 Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.