Southern First Bancshares (NASDAQ:SFST – Get Free Report) and Peoples Financial (OTCMKTS:PFBX – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Profitability
This table compares Southern First Bancshares and Peoples Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern First Bancshares | 11.83% | 7.63% | 0.61% |
| Peoples Financial | 12.85% | 4.96% | 0.59% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Southern First Bancshares and Peoples Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern First Bancshares | 0 | 1 | 1 | 1 | 3.00 |
| Peoples Financial | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares Southern First Bancshares and Peoples Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern First Bancshares | $213.35 million | 2.11 | $15.53 million | $3.23 | 17.02 |
| Peoples Financial | $40.11 million | 2.33 | $21.70 million | $1.02 | 19.85 |
Peoples Financial has lower revenue, but higher earnings than Southern First Bancshares. Southern First Bancshares is trading at a lower price-to-earnings ratio than Peoples Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
75.0% of Southern First Bancshares shares are held by institutional investors. Comparatively, 32.8% of Peoples Financial shares are held by institutional investors. 7.1% of Southern First Bancshares shares are held by company insiders. Comparatively, 28.1% of Peoples Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Southern First Bancshares has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Peoples Financial has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Summary
Southern First Bancshares beats Peoples Financial on 10 of the 15 factors compared between the two stocks.
About Southern First Bancshares
Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.
About Peoples Financial
Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.
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