Head-To-Head Analysis: South Plains Financial (NASDAQ:SPFI) versus South Atlantic Bancshares (OTCMKTS:SABK)

South Plains Financial (NASDAQ:SPFI) and South Atlantic Bancshares (OTCMKTS:SABK) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

55.0% of South Plains Financial shares are held by institutional investors. Comparatively, 13.3% of South Atlantic Bancshares shares are held by institutional investors. 25.4% of South Plains Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares South Plains Financial and South Atlantic Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Plains Financial	18.59%	12.27%	1.26%
South Atlantic Bancshares	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for South Plains Financial and South Atlantic Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Plains Financial	0	0	3	0	3.00
South Atlantic Bancshares	0	0	1	0	3.00

South Plains Financial presently has a consensus price target of $44.6667, suggesting a potential upside of 8.13%. South Atlantic Bancshares has a consensus price target of $19.00, suggesting a potential upside of 8.70%. Given South Atlantic Bancshares’ higher probable upside, analysts plainly believe South Atlantic Bancshares is more favorable than South Plains Financial.

Valuation & Earnings

This table compares South Plains Financial and South Atlantic Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Plains Financial	$288.97 million	2.32	$49.72 million	$3.20	12.91
South Atlantic Bancshares	$93.28 million	1.41	$12.45 million	$1.66	10.53

South Plains Financial has higher revenue and earnings than South Atlantic Bancshares. South Atlantic Bancshares is trading at a lower price-to-earnings ratio than South Plains Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

South Plains Financial pays an annual dividend of $0.64 per share and has a dividend yield of 1.5%. South Atlantic Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. South Plains Financial pays out 20.0% of its earnings in the form of a dividend. South Atlantic Bancshares pays out 6.0% 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. South Plains Financial has raised its dividend for 5 consecutive years. South Plains Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

South Plains Financial has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, South Atlantic Bancshares has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Summary

South Plains Financial beats South Atlantic Bancshares on 14 of the 16 factors compared between the two stocks.

About South Plains Financial

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

About South Atlantic Bancshares

South Atlantic Bancshares, Inc. operates as the bank holding company for South Atlantic Bank that provides consumer and commercial banking products and services to individuals, small businesses, and corporations in South Carolina. The company offers checking, money market, and saving accounts, as well as certificate of deposit, individual retirement, and health saving accounts; personal, auto, and recreation loans, as well as home equity and ready reserve overdraft line of credits, and commercial lending products; and credit cards. It also provides cash management and merchant card services; remote deposit capture and automated clearing house services; online, mobile, and telephone banking services; personal and business checks; mortgage products and services; and wealth management services. The company operates offices in Myrtle Beach, Carolina Forest, North Myrtle Beach, Murrells Inlet, Pawleys Island, Georgetown, Mount Pleasant, Charleston, Bluffton, Hilton Head Island, and Beaufort, South Carolina. South Atlantic Bancshares, Inc. was founded in 2007 and is headquartered in Myrtle Beach, South Carolina.