Reviewing Third Coast Bancshares (NASDAQ:TCBX) & First Us Bancsh (NASDAQ:FUSB)

Third Coast Bancshares (NASDAQ:TCBX) and First Us Bancsh (NASDAQ:FUSB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 44.9%. First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Third Coast Bancshares pays out 515.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Us Bancsh pays out 28.9% of its earnings in the form of a dividend. First Us Bancsh has increased its dividend for 3 consecutive years.

Profitability

This table compares Third Coast Bancshares and First Us Bancsh’s 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%
First Us Bancsh	9.47%	5.86%	0.52%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Third Coast Bancshares and First Us Bancsh, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	3	2	0	2.40
First Us Bancsh	0	1	0	0	2.00

Third Coast Bancshares currently has a consensus target price of $40.00, indicating a potential upside of 6.50%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Third Coast Bancshares is more favorable than First Us Bancsh.

Insider & Institutional Ownership

36.9% of Third Coast Bancshares shares are owned by institutional investors. Comparatively, 18.7% of First Us Bancsh shares are owned by institutional investors. 10.3% of Third Coast Bancshares shares are owned by insiders. Comparatively, 11.2% of First Us Bancsh shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Third Coast Bancshares and First Us Bancsh”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Third Coast Bancshares	$186.02 million	2.80	$47.67 million	$3.27	11.49
First Us Bancsh	$39.91 million	1.78	$8.17 million	$0.97	12.70

Third Coast Bancshares has higher revenue and earnings than First Us Bancsh. Third Coast Bancshares is trading at a lower price-to-earnings ratio than First Us Bancsh, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Third Coast Bancshares has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, First Us Bancsh has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

Third Coast Bancshares beats First Us Bancsh on 12 of the 17 factors compared between the two stocks.

About Third Coast Bancshares

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.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.