Head to Head Review: Third Coast Bancshares (TCBX) versus Its Rivals

Third Coast Bancshares (NASDAQ:TCBX) is one of 919 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Third Coast Bancshares to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.

Insider and Institutional Ownership

36.9% of Third Coast Bancshares shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 10.5% of Third Coast Bancshares shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Third Coast Bancshares and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	3	3	1	2.71
Third Coast Bancshares Competitors	7483	30222	27803	1478	2.35

Third Coast Bancshares currently has a consensus price target of $47.20, suggesting a potential upside of 21.80%. As a group, “Banks” companies have a potential upside of 16.33%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Third Coast Bancshares is more favorable than its peers.

Profitability

This table compares Third Coast Bancshares and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
Third Coast Bancshares Competitors	15.65%	9.44%	0.93%

Volatility & Risk

Third Coast Bancshares has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Third Coast Bancshares’ peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 43.5%. Third Coast Bancshares pays out 431.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Third Coast Bancshares and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Third Coast Bancshares	$245.39 million	$47.67 million	9.91
Third Coast Bancshares Competitors	$139.38 billion	$2.42 billion	21.06

Third Coast Bancshares’ peers have higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Third Coast Bancshares beats its peers on 9 of the 15 factors compared.

Third Coast Bancshares Company Profile

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.