Reviewing BayFirst Financial (NASDAQ:BAFN) and 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 superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

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

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%

Valuation and Earnings

This table compares Seacoast Banking Corporation of Florida and BayFirst Financial”s 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	3.61	$144.88 million	$1.60	21.56
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.

Institutional and Insider Ownership

81.8% of Seacoast Banking Corporation of Florida shares are owned by institutional investors. Comparatively, 16.9% of BayFirst Financial shares are owned by institutional investors. 1.6% of Seacoast Banking Corporation of Florida shares are owned by insiders. Comparatively, 18.8% of BayFirst Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent 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 presently has a consensus price target of $31.90, indicating a potential downside of 7.51%. Given Seacoast Banking Corporation of Florida’s stronger consensus rating and higher possible upside, equities research analysts plainly 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.