WashingtonFirst Bankshares (NASDAQ: WFBI) and Seacoast Banking Corporation of Florida (NASDAQ:SBCF) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitabiliy, valuation and risk.

Volatility and Risk

WashingtonFirst Bankshares has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Seacoast Banking Corporation of Florida has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
WashingtonFirst Bankshares 17.77% 17.21% 0.95%
Seacoast Banking Corporation of Florida 16.95% 9.11% 0.89%

Dividends

WashingtonFirst Bankshares pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Seacoast Banking Corporation of Florida does not pay a dividend. WashingtonFirst Bankshares pays out 19.9% of its earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WashingtonFirst Bankshares $86.55 million 5.09 $18.29 million $1.40 24.08
Seacoast Banking Corporation of Florida $183.00 million 5.06 $33.40 million $0.86 27.70

Seacoast Banking Corporation of Florida has higher revenue and earnings than WashingtonFirst Bankshares. WashingtonFirst Bankshares 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 breakdown of current ratings and price targets for WashingtonFirst Bankshares and Seacoast Banking Corporation of Florida, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WashingtonFirst Bankshares 0 3 0 0 2.00
Seacoast Banking Corporation of Florida 0 2 6 0 2.75

WashingtonFirst Bankshares presently has a consensus target price of $28.00, indicating a potential downside of 17.23%. Seacoast Banking Corporation of Florida has a consensus target price of $21.75, indicating a potential downside of 8.69%. Given Seacoast Banking Corporation of Florida’s stronger consensus rating and higher probable upside, analysts clearly believe Seacoast Banking Corporation of Florida is more favorable than WashingtonFirst Bankshares.

Institutional and Insider Ownership

54.0% of WashingtonFirst Bankshares shares are owned by institutional investors. Comparatively, 71.6% of Seacoast Banking Corporation of Florida shares are owned by institutional investors. 20.7% of WashingtonFirst Bankshares shares are owned by insiders. Comparatively, 2.8% of Seacoast Banking Corporation of Florida shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

WashingtonFirst Bankshares Company Profile

WashingtonFirst Bankshares, Inc. is a bank holding company. The Company, through its subsidiary, WashingtonFirst Bank (the Bank), operates banking offices throughout the Washington, D.C. metropolitan area. The Company’s segments include Commercial Bank, Mortgage Bank, Wealth Management and Other. In addition, the Company provides wealth management services through its subsidiary, 1st Portfolio, Inc. (Wealth Advisors), located in Fairfax, Virginia, and mortgage banking services through the Bank’s subsidiary, WashingtonFirst Mortgage Corporation, which operates in two locations: Fairfax, Virginia and Rockville, Maryland. The Company offers a range of commercial banking products and services to small-to-medium sized businesses, not-for-profit organizations, professional service firms and individuals in the greater Washington, D.C. metropolitan area.

Seacoast Banking Corporation of Florida Company Profile

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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