Reviewing Wells Fargo & Company (WFC)’s and Southern First Bancshares Inc. (NASDAQ:SFST)’s results

We will be contrasting the differences between Wells Fargo & Company (NYSE:WFC) and Southern First Bancshares Inc. (NASDAQ:SFST) as far as profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation are concerned. The two businesses are rivals in the Money Center Banks industry.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wells Fargo & Company 47 2.58 N/A 4.88 9.92
Southern First Bancshares Inc. 37 4.24 N/A 3.21 12.72

In table 1 we can see Wells Fargo & Company and Southern First Bancshares Inc.’s top-line revenue, earnings per share and valuation. Southern First Bancshares Inc. is observed to has lower revenue and earnings than Wells Fargo & Company. The business with the lower price-to-earnings out of the two companies is considered for more affordable of the two firms presently. Wells Fargo & Company’s presently lower price-to-earnings ratio makes it the more affordable of the two businesses.

Profitability

Table 2 provides Wells Fargo & Company and Southern First Bancshares Inc.’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
Wells Fargo & Company 0.00% 11.8% 1.1%
Southern First Bancshares Inc. 0.00% 13.1% 1.2%

Risk and Volatility

Wells Fargo & Company has a 1.07 beta, while its volatility is 7.00% which is more volatile than S&P 500. Competitively, Southern First Bancshares Inc. is 6.00% less volatile than S&P 500, because of the 0.94 beta.

Analyst Ratings

The Recommendations and Ratings for Wells Fargo & Company and Southern First Bancshares Inc. are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Wells Fargo & Company 1 5 1 2.14
Southern First Bancshares Inc. 0 0 0 0.00

Wells Fargo & Company has a 5.40% upside potential and a consensus price target of $51.56.

Insider & Institutional Ownership

The shares of both Wells Fargo & Company and Southern First Bancshares Inc. are owned by institutional investors at 77.7% and 74.6% respectively. 77.8% are Wells Fargo & Company’s share owned by insiders. On the other hand, insiders owned about 3.1% of Southern First Bancshares Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Wells Fargo & Company -0.08% 1.51% 0.37% -3.35% -17.23% 5.06%
Southern First Bancshares Inc. 2.23% 5.1% 12.31% 10.69% -8.67% 27.16%

For the past year Wells Fargo & Company has weaker performance than Southern First Bancshares Inc.

Summary

On 6 of the 10 factors Southern First Bancshares Inc. beats Wells Fargo & Company.

Wells Fargo & Company, a diversified financial services company, provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. Its Community Banking segment offers checking, savings, market rate, and individual retirement accounts, as well as time deposits and remittances; and lines of credit, automobile floor plan lines, equity lines and loans, equipment and transportation loans, education and residential mortgage loans, and debit and credit cards. This segment also provides equipment leases, real estate and other commercial financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, merchant payment processing, and private label financing solutions, as well as purchases retail installment contracts. Its Wholesale Banking segment offers commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection, foreign exchange, treasury management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency, and investment banking services, as well as online/electronic products. This segment also provides construction, and land acquisition and development loans; secured and unsecured lines of credit; interim financing arrangements; rehabilitation loans; affordable housing loans and letters of credit; loans for securitization; and real estate and mortgage brokerage services. The companyÂ’s Wealth and Investment Management segment offers financial planning, private banking, credit, and investment management and fiduciary services, as well as retirement and trust services. It serves clients through approximately 8,600 locations and 13,000 ATMs; online and mobile banking; and offices in 42 countries. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.

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