Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Prime Meridian (OTCMKTS:PMHG) Financial Survey

Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Prime Meridian (OTCMKTS:PMHG) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Seacoast Banking Co. of Florida and Prime Meridian’s 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%
Prime Meridian	16.71%	9.58%	0.89%

Insider & Institutional Ownership

81.8% of Seacoast Banking Co. of Florida shares are held by institutional investors. Comparatively, 11.8% of Prime Meridian shares are held by institutional investors. 1.5% of Seacoast Banking Co. of Florida shares are held by insiders. Comparatively, 25.9% of Prime Meridian shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Seacoast Banking Co. of Florida pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Prime Meridian pays an annual dividend of $0.25 per share and has a dividend yield of 1.0%. Seacoast Banking Co. of Florida pays out 51.4% of its earnings in the form of a dividend. Prime Meridian pays out 10.0% 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.

Volatility and Risk

Seacoast Banking Co. of Florida has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Prime Meridian has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Seacoast Banking Co. of Florida and Prime Meridian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seacoast Banking Co. of Florida	0	2	2	0	2.50
Prime Meridian	0	0	0	0	N/A

Seacoast Banking Co. of Florida currently has a consensus target price of $29.88, indicating a potential upside of 9.15%. Given Seacoast Banking Co. of Florida’s higher probable upside, equities analysts plainly believe Seacoast Banking Co. of Florida is more favorable than Prime Meridian.

Valuation & Earnings

This table compares Seacoast Banking Co. of Florida and Prime Meridian”s 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	$517.44 million	4.49	$104.03 million	$1.40	19.55
Prime Meridian	$41.82 million	1.97	$8.71 million	$2.50	10.00

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

Summary

Seacoast Banking Co. of Florida beats Prime Meridian on 9 of the 15 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 Prime Meridian

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.