Touchstone Bankshares (OTCMKTS:TSBA) and Signature Bank (NASDAQ:SBNY) Head-To-Head Analysis

Volatility & Risk

Signature Bank has a beta of 11.52, meaning that its stock price is 1,052% more volatile than the S&P 500. Comparatively, Touchstone Bankshares has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Signature Bank and Touchstone Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$2.70 billion	0.02	$1.34 billion	$10.22	0.07
Touchstone Bankshares	N/A	N/A	$1.61 million	$0.65	21.92

Signature Bank has higher revenue and earnings than Touchstone Bankshares. Signature Bank is trading at a lower price-to-earnings ratio than Touchstone Bankshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 102.9%. Touchstone Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Signature Bank pays out 6.8% of its earnings in the form of a dividend. Touchstone Bankshares pays out 49.2% 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. Signature Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Signature Bank and Touchstone Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Touchstone Bankshares	N/A	N/A	N/A

Insider and Institutional Ownership

11.1% of Signature Bank shares are held by institutional investors. Comparatively, 0.4% of Touchstone Bankshares shares are held by institutional investors. 1.5% of Signature Bank shares are held by company insiders. Comparatively, 10.4% of Touchstone Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Signature Bank beats Touchstone Bankshares on 7 of the 9 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

About Touchstone Bankshares

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, professional mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, operating capital, business term, and construction loans, as well as business lines of credit. In addition, the company offers credit and debit cards; and digital banking, treasury, wealth management, and financial planning services. It has branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.