Comparing Peoples Financial (OTCMKTS:PFBX) & South Atlantic Bancshares (OTCMKTS:SABK)
by Mitch Edgeman · The Markets DailyPeoples Financial (OTCMKTS:PFBX – Get Free Report) and South Atlantic Bancshares (OTCMKTS:SABK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.
Volatility and Risk
Peoples Financial has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, South Atlantic Bancshares has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Peoples Financial and South Atlantic Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peoples Financial | 0 | 0 | 0 | 0 | 0.00 |
| South Atlantic Bancshares | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. South Atlantic Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Peoples Financial pays out 42.4% of its earnings in the form of a dividend. South Atlantic Bancshares pays out 4.8% 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.
Insider and Institutional Ownership
32.8% of Peoples Financial shares are owned by institutional investors. Comparatively, 13.3% of South Atlantic Bancshares shares are owned by institutional investors. 28.1% of Peoples Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Peoples Financial and South Atlantic Bancshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peoples Financial | $35.66 million | 2.72 | $3.91 million | $0.85 | 24.72 |
| South Atlantic Bancshares | $102.25 million | 1.68 | $15.94 million | $2.10 | 10.79 |
South Atlantic Bancshares has higher revenue and earnings than Peoples Financial. South Atlantic 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.
Profitability
This table compares Peoples Financial and South Atlantic Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peoples Financial | 10.97% | 3.99% | 0.50% |
| South Atlantic Bancshares | N/A | N/A | N/A |
Summary
Peoples Financial beats South Atlantic Bancshares on 9 of the 14 factors compared between the two stocks.
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.
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.