SEC BANCORP INC/SH SH (OTCMKTS:SCYT) and First Defiance Financial (NASDAQ:FDEF) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Risk & Volatility
SEC BANCORP INC/SH SH has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, First Defiance Financial has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
This table compares SEC BANCORP INC/SH SH and First Defiance Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A||N/A||N/A|
|First Defiance Financial||$186.04 million||3.58||$49.37 million||$2.53||6.99|
First Defiance Financial has higher revenue and earnings than SEC BANCORP INC/SH SH.
Insider and Institutional Ownership
1.9% of SEC BANCORP INC/SH SH shares are held by institutional investors. Comparatively, 64.9% of First Defiance Financial shares are held by institutional investors. 1.6% of First Defiance Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares SEC BANCORP INC/SH SH and First Defiance Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A|
|First Defiance Financial||7.34%||8.19%||1.07%|
SEC BANCORP INC/SH SH pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. First Defiance Financial pays an annual dividend of $0.88 per share and has a dividend yield of 5.0%. First Defiance Financial pays out 34.8% of its earnings in the form of a dividend. First Defiance Financial has increased its dividend for 7 consecutive years. First Defiance Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for SEC BANCORP INC/SH SH and First Defiance Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SEC BANCORP INC/SH SH||0||0||0||0||N/A|
|First Defiance Financial||0||0||2||0||3.00|
First Defiance Financial has a consensus price target of $21.00, suggesting a potential upside of 18.78%. Given First Defiance Financial’s higher possible upside, analysts clearly believe First Defiance Financial is more favorable than SEC BANCORP INC/SH SH.
First Defiance Financial beats SEC BANCORP INC/SH SH on 11 of the 12 factors compared between the two stocks.
About SEC BANCORP INC/SH SH
Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking, financial, and mortgage services to individual and corporate customers primarily in Warren County, Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans and lines of credit, as well as provides trust services. In addition, the company provides wealth and financial management services that include mutual funds, stocks, and bonds; rollovers; personal and small business retirement plans; fixed, variable, and indexed annuities; life insurance; trust and estate services; and other plans, as well as online, mobile, and telephone banking services. It operates through three full-service bank locations and five ATM locations in Warren County. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.
About First Defiance Financial
First Defiance Financial Corp. operates as a unitary thrift holding company that provides community-based financial services in northwest Ohio, northeast Indiana, and southeastern Michigan. It offers checking accounts, money market accounts, savings accounts, term certificate accounts, demand deposits, and certificates of deposits, as well as certificate of deposit account registry service; and commercial real estate, commercial, consumer finance, 1-4 family residential real estate, construction, and home equity and improvement loans. The company also provides trust and wealth management, and online banking services. In addition, it sells various property and casualty, group health and life, and individual health and life insurance products. The company operates through 44 full service banking centers and 1 loan production office. First Defiance Financial Corp. was incorporated in 1995 and is headquartered in Defiance, Ohio.
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