Critical Contrast: Texas Capital Bancshares (NASDAQ:TCBI) versus Seacoast Banking Co. of Florida (NASDAQ:SBCF)

Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Texas Capital Bancshares (NASDAQ:TCBI) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Seacoast Banking Co. of Florida and Texas Capital Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seacoast Banking Co. of Florida	$768.13 million	2.86	$104.03 million	$1.40	18.49
Texas Capital Bancshares	$1.79 billion	1.66	$189.14 million	$3.30	19.50

Texas Capital Bancshares has higher revenue and earnings than Seacoast Banking Co. of Florida. Seacoast Banking Co. of Florida is trading at a lower price-to-earnings ratio than Texas Capital Bancshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Seacoast Banking Co. of Florida has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

81.8% of Seacoast Banking Co. of Florida shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 1.5% of Seacoast Banking Co. of Florida shares are owned by insiders. Comparatively, 1.0% of Texas Capital Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Seacoast Banking Co. of Florida and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seacoast Banking Co. of Florida	14.84%	5.58%	0.79%
Texas Capital Bancshares	8.08%	6.05%	0.59%

Analyst Recommendations

This is a breakdown of current ratings for Seacoast Banking Co. of Florida and Texas Capital Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seacoast Banking Co. of Florida	0	3	2	0	2.40
Texas Capital Bancshares	4	7	2	0	1.85

Seacoast Banking Co. of Florida currently has a consensus target price of $28.50, indicating a potential upside of 10.12%. Texas Capital Bancshares has a consensus target price of $65.19, indicating a potential upside of 1.32%. Given Seacoast Banking Co. of Florida’s stronger consensus rating and higher possible upside, equities analysts plainly believe Seacoast Banking Co. of Florida is more favorable than Texas Capital Bancshares.

Summary

Texas Capital Bancshares beats Seacoast Banking Co. of Florida on 7 of the 13 factors compared between the two stocks.

About Seacoast Banking Co. of Florida

Seacoast Banking Corporation of Florida operates as the bank holding company for Seacoast National Bank that provides integrated financial services to retail and commercial customers in Florida. The company offers noninterest and interest-bearing demand deposit, money market, savings, and customer sweep accounts; time certificates of deposit; construction and land development, commercial and residential real estate, and commercial and financial loans; and consumer loans, including installment loans and revolving lines, as well as loans for automobiles, boats, and personal and family purposes. It also provides wealth management, mortgage, and insurance services through online and mobile banking solutions, as well as brokerage and annuity services. Seacoast Banking Corporation of Florida was founded in 1926 and is headquartered in Stuart, Florida.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.