Lakeland Financial (NASDAQ:LKFN – Get Rating) and Primis Financial (NASDAQ:FRST – Get Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Dividends
Lakeland Financial pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Primis Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Lakeland Financial pays out 42.0% of its earnings in the form of a dividend. Primis Financial pays out 46.5% 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. Lakeland Financial has raised its dividend for 2 consecutive years.
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Volatility and Risk
Lakeland Financial has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Primis Financial has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Valuation & Earnings
This table compares Lakeland Financial and Primis Financial's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Lakeland Financial | $237.94 million | 7.76 | $95.73 million | $3.81 | 19.11 |
| Primis Financial | $124.38 million | 2.40 | $31.25 million | $0.86 | 14.10 |
Lakeland Financial has higher revenue and earnings than Primis Financial. Primis Financial is trading at a lower price-to-earnings ratio than Lakeland Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lakeland Financial and Primis Financial's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Lakeland Financial | 40.50% | 15.27% | 1.53% |
| Primis Financial | 17.39% | 5.95% | 0.72% |
Insider and Institutional Ownership
81.3% of Lakeland Financial shares are owned by institutional investors. Comparatively, 71.6% of Primis Financial shares are owned by institutional investors. 4.0% of Lakeland Financial shares are owned by company insiders. Comparatively, 10.6% of Primis Financial shares are owned by company 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 Recommendations
This is a summary of recent ratings and recommmendations for Lakeland Financial and Primis Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Lakeland Financial | 0 | 0 | 0 | 0 | N/A |
| Primis Financial | 0 | 0 | 0 | 0 | N/A |
Lakeland Financial currently has a consensus target price of $80.00, suggesting a potential upside of 9.88%. Given Lakeland Financial's higher possible upside, analysts plainly believe Lakeland Financial is more favorable than Primis Financial.
Summary
Lakeland Financial beats Primis Financial on 12 of the 15 factors compared between the two stocks.
About Lakeland Financial
(Get Rating)
Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services. The company accepts various deposit products, such as noninterest bearing, interest-bearing checking, savings, money market, NOW, and demand deposits. Its loan products include commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, consumer 1-4 family mortgage, and other consumer loans. The company also offers retail and merchant credit card services; corporate treasury management, wealth advisory, and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and on-line treasury management services. It serves commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care industries. As of December 31, 2021, the company operated 51 offices in fifteen counties, including 45 offices in northern Indiana and six offices in central Indiana. Lakeland Financial Corporation was founded in 1872 and is headquartered in Warsaw, Indiana.
About Primis Financial
(Get Rating)
Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.
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