Southern First Bancshares (NASDAQ:SFST – Get Free Report) and Guaranty Bancshares (NASDAQ:GNTY – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
75.0% of Southern First Bancshares shares are held by institutional investors. Comparatively, 39.4% of Guaranty Bancshares shares are held by institutional investors. 7.6% of Southern First Bancshares shares are held by insiders. Comparatively, 26.4% of Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Southern First Bancshares and Guaranty Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern First Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| Guaranty Bancshares | 0 | 2 | 1 | 0 | 2.33 |
Profitability
This table compares Southern First Bancshares and Guaranty Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern First Bancshares | 6.69% | 4.33% | 0.33% |
| Guaranty Bancshares | 15.56% | 8.74% | 0.82% |
Risk and Volatility
Southern First Bancshares has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Valuation and Earnings
This table compares Southern First Bancshares and Guaranty Bancshares’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern First Bancshares | $187.46 million | 1.18 | $13.43 million | $1.64 | 16.57 |
| Guaranty Bancshares | $179.01 million | 1.90 | $30.04 million | $2.44 | 12.09 |
Guaranty Bancshares has lower revenue, but higher earnings than Southern First Bancshares. Guaranty Bancshares is trading at a lower price-to-earnings ratio than Southern First Bancshares, indicating that it is currently the more affordable of the two stocks.
Summary
Guaranty Bancshares beats Southern First Bancshares on 7 of the 13 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 Guaranty Bancshares
Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland, agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online and mobile banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. Guaranty Bancshares, Inc. was founded in 1913 and is headquartered in Addison, Texas.
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