Red River Bancshares (NASDAQ:RRBI) and Triumph Financial (NASDAQ:TFIN) Head to Head Comparison

Red River Bancshares (NASDAQ:RRBI) and Triumph Financial (NASDAQ:TFIN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Red River Bancshares and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red River Bancshares	24.83%	12.18%	1.14%
Triumph Financial	8.69%	5.14%	0.74%

Risk and Volatility

Red River Bancshares has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Red River Bancshares and Triumph Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red River Bancshares	0	0	1	0	3.00
Triumph Financial	2	5	0	0	1.71

Red River Bancshares currently has a consensus price target of $55.00, suggesting a potential upside of 10.46%. Triumph Financial has a consensus price target of $62.67, suggesting a potential downside of 21.00%. Given Red River Bancshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Red River Bancshares is more favorable than Triumph Financial.

Institutional and Insider Ownership

27.6% of Red River Bancshares shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 16.4% of Red River Bancshares shares are held by company insiders. Comparatively, 6.2% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Red River Bancshares and Triumph Financial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red River Bancshares	$149.60 million	2.36	$34.88 million	$4.86	10.24
Triumph Financial	$472.59 million	3.92	$41.08 million	$1.60	49.58

Triumph Financial has higher revenue and earnings than Red River Bancshares. Red River Bancshares is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Red River Bancshares beats Triumph Financial on 8 of the 14 factors compared between the two stocks.

About Red River Bancshares

Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.

About Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.