Financial Survey: Triumph Financial (NYSE:TFIN) & Community West Bancshares (NASDAQ:CWBC)

Community West Bancshares (NASDAQ:CWBC) and Triumph Financial (NYSE:TFIN) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Institutional & Insider Ownership

33.8% of Community West Bancshares shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 9.0% of Community West Bancshares shares are held by company insiders. Comparatively, 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Community West Bancshares and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community West Bancshares	14.05%	10.46%	1.22%
Triumph Financial	8.96%	5.57%	0.72%

Volatility and Risk

Community West Bancshares has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Community West Bancshares and Triumph Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community West Bancshares	0	2	3	1	2.83
Triumph Financial	0	5	2	0	2.29

Community West Bancshares presently has a consensus price target of $28.83, suggesting a potential upside of 11.54%. Triumph Financial has a consensus price target of $78.80, suggesting a potential upside of 28.70%. Given Triumph Financial’s higher probable upside, analysts plainly believe Triumph Financial is more favorable than Community West Bancshares.

Earnings and Valuation

This table compares Community West Bancshares and Triumph Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community West Bancshares	$196.20 million	3.58	$38.17 million	$1.58	16.36
Triumph Financial	$518.88 million	2.82	$25.36 million	$1.96	31.24

Community West Bancshares has higher earnings, but lower revenue than Triumph Financial. Community West Bancshares is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Community West Bancshares beats Triumph Financial on 9 of the 15 factors compared between the two stocks.

About Community West Bancshares

Community West Bancshares is a California bank holding company and the parent of Community West Bank. The bank provides commercial and personal banking services, including deposit accounts, cash management, and lending for businesses and individuals. Its lending activities include commercial and commercial real estate loans, agricultural financing, Small Business Administration lending, and residential mortgage loans. Community West Bank serves communities across California’s Central Coast and Central Valley.

About Triumph Financial

Triumph Financial, Inc. is a financial services company focused on payments, factoring and banking, with a particular emphasis on the transportation industry. Its services include freight-payment solutions through TriumphPay, invoice factoring through Triumph Business Capital and commercial banking through TBK Bank. TriumphPay connects freight brokers, carriers and other participants in the transportation-payment process, offering tools for invoice management, payment processing and related services.