Southern First vs Runway Growth Finance

Southern First and Runway Growth Finance are examined side by side to explain how their business models, financial performance, and market context differ. This page provides neutral analysis of strategy, operations, funding approaches, and sector positioning to help readers understand each company in context. Educational content, not financial advice.

Southern First and Runway Growth Finance are examined side by side to explain how their business models, financial performance, and market context differ. This page provides neutral analysis of strate...

About The Companies

Southern First (SFST)

Southern First Bancshares (SFST) is a small‑capitalisation banking group (market cap US$345.64m) that operates in the regional banking sector. Investors should know its performance is typically driven by net interest margin, loan growth, deposit trends and credit quality rather than broad-market momentum. As a smaller bank, it can be more sensitive to local economic conditions, funding costs and regulatory changes. Key metrics to track include loan loss provisions, non-performing assets, capital ratios and deposit stability. Market capitalisation in this range often means lower liquidity and higher share-price volatility compared with larger banks. Income from interest and fee-based services can support earnings, but dividends — if paid — are subject to board discretion and regulatory limits. This summary aims to inform general research and is not personal investment advice; values can rise and fall and past performance is not a guarantee of future returns.

Runway Growth Finance (RWAY)

Runway Growth Finance Corp (RWAY) is a US-listed business development company (BDC) that provides debt and equity financing to growth-stage technology and life-sciences companies. With a market capitalisation of approximately $359.53M, it aims to generate income through interest, fees and potential equity upside from sponsored investments. BDCs are regulated entities that must distribute a large portion of taxable income, which can make them attractive to income-seeking investors, but NAV and share price can be volatile. Key considerations include credit risk from lending to companies with early or variable cashflows, portfolio concentration, and sensitivity to interest-rate cycles and market sentiment. Liquidity for some underlying investments may be limited, and returns are not guaranteed. This summary is for general educational purposes only and is not personal financial advice; investors should assess suitability, review financial statements, regulatory filings and consider consulting a financial adviser before investing.

Comparison Snapshot

Key Financial Metrics

SFST

Metric

RWAY

$450.16M

Market Cap

$336.77M

56.95%

Potential Profit

19.05%

Buy

Analyst Rating

Buy

Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

The merger of Pinnacle Financial and Synovus Financial creates a dominant regional bank in the Southeastern U.S. This major deal could trigger a wave of consolidation, creating opportunities among other regional banks poised for similar strategic moves.

Published: July 26, 2025

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Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

The merger of Pinnacle Financial and Synovus Financial creates a dominant regional bank in the Southeastern U.S. This major deal could trigger a wave of consolidation, creating opportunities among other regional banks poised for similar strategic moves.

Published: July 26, 2025

Explore Basket

Investment Analysis

Southern First

SFST

Pros

Southern First Bancshares reported a revenue growth of 8.1% in 2024 compared to the previous year, indicating positive top-line expansion.
The company’s earnings increased by 15.67% in 2024, reflecting improved profitability.
Southern First has a diversified loan portfolio across commercial, consumer, and mortgage loans in multiple southeastern states, providing geographical and sector diversification.

Considerations

The stock lacks a dividend, which may deter income-focused investors.
Its market capitalization of approximately $343 million categorizes it as a smaller regional bank, limiting scale advantages.
The bank operates primarily in southeastern U.S. markets, which may expose it to regional economic cyclicality and concentration risk.

Runway Growth Finance

RWAY

Pros

Runway Growth Finance focuses on senior secured loans to high-growth sectors like technology and life sciences, providing exposure to dynamic industries.
The company has a strong normalized return on equity of approximately 12.38%, indicating efficient use of shareholder capital.
Its portfolio is geographically diversified across the U.S., Germany, UK, Canada, and the Netherlands, reducing country-specific risks.

Considerations

Runway Growth Finance operates as a specialty finance company with no employees, possibly reflecting operational dependence on external managers or structures.
The company’s small value stock style suggests potential volatility and sensitivity to market cycles impacting small-cap credit issuers.
Limited publicly available liquidity ratios and interest coverage metrics may present challenges in assessing short-term financial resilience.

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Southern First vs Runway Growth Finance

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

Investment Analysis

Southern First

Pros

Considerations

Runway Growth Finance

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Southern First vs MBIA

Frequently asked questions

About The Companies

Comparison Snapshot

Southern First vs Runway Growth Finance

About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

Which Baskets Do They Appear In?

Riding The Southeast Consolidation Wave

Investment Analysis

Southern First

Pros

Considerations

Runway Growth Finance

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Southern First vs MBIA

Frequently asked questions

What does revenue growth indicate when comparing two companies like SOUTHERN FIRST BANCSHARES and RUNWAY GROWTH FINANCE CORP.?

How should earnings growth differ from revenue growth when evaluating these stocks?

What does diversification mean in the context of these two companies’ operations?

Why might a lack of dividend be a consideration for some investors when comparing these two stocks?

How does market capitalisation influence investment risk for these stocks?

What should readers know about sector and business model differences between these two stocks?

How does geographic exposure affect risk for SOUTHERN FIRST BANCSHARES and RUNWAY GROWTH FINANCE?

What can be inferred about volatility and liquidity from the two company profiles?

How should a reader approach comparing the pro and con statements for each stock?

What is the educational takeaway from reading these two stock profiles side by side?

About The Companies

Comparison Snapshot