Texas Capital Bancshares (NASDAQ:TCBI) versus PCB Bancorp (NASDAQ:PCB) Critical Survey

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

Institutional and Insider Ownership

99.4% of Texas Capital Bancshares shares are held by institutional investors. Comparatively, 40.4% of PCB Bancorp shares are held by institutional investors. 0.6% of Texas Capital Bancshares shares are held by insiders. Comparatively, 24.1% of PCB Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Texas Capital Bancshares has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Texas Capital Bancshares and PCB Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Capital Bancshares 1 1 1 1 2.50
PCB Bancorp 0 1 0 0 2.00

Texas Capital Bancshares presently has a consensus target price of $62.29, suggesting a potential upside of 0.98%. PCB Bancorp has a consensus target price of $22.75, suggesting a potential upside of 20.18%. Given PCB Bancorp’s higher probable upside, analysts plainly believe PCB Bancorp is more favorable than Texas Capital Bancshares.

Profitability

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

Net Margins Return on Equity Return on Assets
Texas Capital Bancshares 18.42% 6.48% 0.54%
PCB Bancorp 39.13% 15.93% 1.87%

Earnings and Valuation

This table compares Texas Capital Bancshares and PCB Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Capital Bancshares $1.01 billion 3.03 $253.94 million $3.23 19.10
PCB Bancorp $99.91 million 2.83 $40.10 million $2.70 7.01

Texas Capital Bancshares has higher revenue and earnings than PCB Bancorp. PCB 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.

Summary

Texas Capital Bancshares beats PCB Bancorp on 10 of the 15 factors compared between the two stocks.

About Texas Capital Bancshares

(Get Rating)

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, and wealth management services. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as information, wire transfer initiation, ACH initiation, account transfer, and service integration services; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial loans for general corporate purposes comprising financing working capital, internal growth, acquisitions, and business insurance premiums, as well as consumer loans; loans to exploration and production companies; mortgage finance loans; commercial real estate and residential homebuilder finance loans; first and second lien loans for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings; and real estate loans originated through a small business administration program, as well as equipment finance and leasing services, and letters of credit. In addition, it offers online and mobile banking, and debit and credit card services; escrow services; personal wealth management and trust services; and depositors American Airlines AAdvantage miles. It operates in Austin, Fort Worth, Dallas, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

About PCB Bancorp

(Get Rating)

PCB Bancorp operates as the bank holding company for Pacific City Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and other consumer loans comprising automobile secured loans and personal loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of 11 full-service branches in Los Angeles and Orange counties, California; and one full-service branch in each of Englewood Cliffs, New Jersey, and Bayside, New York. It also operates 10 loan production offices in Irvine, Artesia, and Los Angeles, California; Annandale, Virginia; Atlanta, Georgia; Chicago, Illinois; Bellevue, Washington; Aurora, Colorado; Carrollton, Texas; and New York, New York. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.

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