Head to Head Review: Simmons First National (NASDAQ:SFNC) and Seacoast Banking Corporation of Florida (NASDAQ:SBCF)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simmons First National	$125.62 million	24.77	-$397.55 million	($2.56)	-8.38
Seacoast Banking Corporation of Florida	$675.79 million	4.36	$144.88 million	$1.52	19.94

Seacoast Banking Corporation of Florida has higher revenue and earnings 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 current ratings and target prices for Simmons First National and Seacoast Banking Corporation of Florida, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	0	5	2	2	2.67
Seacoast Banking Corporation of Florida	0	3	3	0	2.50

Simmons First National presently has a consensus target price of $22.00, indicating a potential upside of 2.56%. Seacoast Banking Corporation of Florida has a consensus target price of $33.13, indicating a potential upside of 9.29%. Given Seacoast Banking Corporation of Florida’s higher possible upside, analysts clearly believe Seacoast Banking Corporation of Florida is more favorable than Simmons First National.

Dividends

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 an annual dividend of $0.76 per share and has a dividend yield of 2.5%. Simmons First National pays out -33.6% of its earnings in the form of a dividend. Seacoast Banking Corporation of Florida pays out 50.0% 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. Simmons First National has increased its dividend for 14 consecutive years and Seacoast Banking Corporation of Florida has increased its dividend for 4 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Simmons First National has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Seacoast Banking Corporation of Florida has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Profitability

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

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

Insider & Institutional Ownership

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

Summary

Seacoast Banking Corporation of Florida beats Simmons First National on 11 of the 18 factors compared between the two stocks.

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.

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.