Contrasting Seacoast Banking Co. of Florida (NASDAQ:SBCF) and John Marshall Bancorp (NASDAQ:JMSB)

John Marshall Bancorp (NASDAQ:JMSB) and Seacoast Banking Co. of Florida (NASDAQ:SBCF) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares John Marshall Bancorp and Seacoast Banking Co. of Florida”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$51.62 million	5.72	$5.16 million	$1.19	17.43
Seacoast Banking Co. of Florida	$510.68 million	4.63	$104.03 million	$1.38	20.05

Seacoast Banking Co. of Florida has higher revenue and earnings than John Marshall Bancorp. John Marshall Bancorp 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for John Marshall Bancorp and Seacoast Banking Co. of Florida, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Marshall Bancorp	0	0	0	0	0.00
Seacoast Banking Co. of Florida	0	3	2	0	2.40

Seacoast Banking Co. of Florida has a consensus target price of $28.70, indicating a potential upside of 3.72%. Given Seacoast Banking Co. of Florida’s stronger consensus rating and higher possible upside, analysts clearly believe Seacoast Banking Co. of Florida is more favorable than John Marshall Bancorp.

Volatility and Risk

John Marshall Bancorp has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Seacoast Banking Co. of Florida has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

39.1% of John Marshall Bancorp shares are held by institutional investors. Comparatively, 81.8% of Seacoast Banking Co. of Florida shares are held by institutional investors. 12.7% of John Marshall Bancorp shares are held by insiders. Comparatively, 1.5% of Seacoast Banking Co. of Florida shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

John Marshall Bancorp pays an annual dividend of $0.25 per share and has a dividend yield of 1.2%. Seacoast Banking Co. of Florida pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. John Marshall Bancorp pays out 21.0% of its earnings in the form of a dividend. Seacoast Banking Co. of Florida pays out 52.2% 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.

Profitability

This table compares John Marshall Bancorp and Seacoast Banking Co. of Florida’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	15.13%	7.15%	0.75%
Seacoast Banking Co. of Florida	14.55%	5.44%	0.78%

Summary

Seacoast Banking Co. of Florida beats John Marshall Bancorp on 11 of the 16 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.

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.