Texas Capital Bancshares (NASDAQ:TCBI) vs. Byline Bancorp (NYSE:BY) Head to Head Comparison

Byline Bancorp (NYSE:BY) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Byline Bancorp and Texas Capital Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$457.22 million	3.79	$130.05 million	$3.43	11.18
Texas Capital Bancshares	$2.00 billion	2.16	$330.24 million	$7.79	13.04

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

Analyst Ratings

This is a breakdown of recent recommendations for Byline Bancorp and Texas Capital Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	3	3	0	2.50
Texas Capital Bancshares	1	8	3	0	2.17

Byline Bancorp currently has a consensus target price of $43.00, indicating a potential upside of 12.11%. Texas Capital Bancshares has a consensus target price of $105.09, indicating a potential upside of 3.43%. Given Byline Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Byline Bancorp is more favorable than Texas Capital Bancshares.

Dividends

Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Texas Capital Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. Byline Bancorp pays out 16.3% of its earnings in the form of a dividend. Texas Capital Bancshares pays out 10.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Byline Bancorp has raised its dividend for 1 consecutive years. Byline Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Byline Bancorp and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	24.06%	12.04%	1.57%
Texas Capital Bancshares	17.74%	11.04%	1.11%

Institutional & Insider Ownership

67.7% of Byline Bancorp shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 29.1% of Byline Bancorp shares are owned by company insiders. Comparatively, 1.9% of Texas Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Byline Bancorp has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Summary

Byline Bancorp beats Texas Capital Bancshares on 10 of the 16 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.