TriCo Bancshares (NASDAQ: TCBK) and Eagle Bancorp (NASDAQ:EGBN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Volatility & Risk

TriCo Bancshares has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares TriCo Bancshares and Eagle Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriCo Bancshares 21.87% 10.27% 1.11%
Eagle Bancorp 32.40% 12.59% 1.55%

Earnings & Valuation

This table compares TriCo Bancshares and Eagle Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TriCo Bancshares $218.27 million 4.31 $44.81 million $2.15 19.07
Eagle Bancorp $313.09 million 7.33 $97.70 million $3.22 20.87

Eagle Bancorp has higher revenue and earnings than TriCo Bancshares. TriCo Bancshares is trading at a lower price-to-earnings ratio than Eagle Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

TriCo Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Eagle Bancorp does not pay a dividend. TriCo Bancshares pays out 31.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for TriCo Bancshares and Eagle Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriCo Bancshares 0 1 1 0 2.50
Eagle Bancorp 0 2 3 0 2.60

TriCo Bancshares presently has a consensus price target of $37.00, indicating a potential downside of 9.78%. Eagle Bancorp has a consensus price target of $66.00, indicating a potential downside of 1.79%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Bancorp is more favorable than TriCo Bancshares.

Insider & Institutional Ownership

68.5% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 68.3% of Eagle Bancorp shares are owned by institutional investors. 9.1% of TriCo Bancshares shares are owned by insiders. Comparatively, 8.4% of Eagle Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Eagle Bancorp beats TriCo Bancshares on 12 of the 16 factors compared between the two stocks.

About TriCo Bancshares

TriCo Bancshares is a bank holding company. The Company’s principal subsidiary is Tri Counties Bank, a California-chartered commercial bank (the Bank). The Bank offers banking services to retail customers and small to medium-sized businesses through 68 branch offices in Northern and Central California. As of December 31, 2016, the Bank was engaged in the general commercial banking business in 26 counties in Northern and Central California. The Bank operated from 58 traditional branches and 10 in-store branches, as of December 31, 2016. The Bank conducts a commercial banking business, including accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. It also offers installment note collection, issues cashier’s checks, sells travelers checks and provides safe deposit boxes and other customary banking services.

About Eagle Bancorp

Eagle Bancorp, Inc. is a bank holding company for EagleBank (the Bank). The Bank is the Company’s principal operating subsidiary. The Bank is a chartered commercial bank. As of December 31, 2016, the Bank operated 21 banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and nine in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers, as well as the community the Bank serves. It also offers online banking, mobile banking and remote deposit services.

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