Texas Capital Bancshares (NASDAQ:TCBI) and Primis Financial (NASDAQ:FRST) Critical Analysis

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

Profitability

This table compares Texas Capital Bancshares and Primis Financial’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%
Primis Financial 17.39% 5.91% 0.72%

Valuation & Earnings

This table compares Texas Capital Bancshares and Primis Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Capital Bancshares $1.01 billion 2.94 $253.94 million $3.23 18.50
Primis Financial $124.38 million 2.74 $31.25 million $0.86 16.10

Texas Capital Bancshares has higher revenue and earnings than Primis Financial. Primis Financial 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.

Risk and Volatility

Texas Capital Bancshares has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Primis Financial has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Texas Capital Bancshares and Primis Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Capital Bancshares 0 4 1 1 2.50
Primis Financial 0 0 0 0 N/A

Texas Capital Bancshares currently has a consensus target price of $63.67, indicating a potential upside of 6.56%. Given Texas Capital Bancshares’ higher probable upside, research analysts plainly believe Texas Capital Bancshares is more favorable than Primis Financial.

Institutional and Insider Ownership

97.8% of Texas Capital Bancshares shares are held by institutional investors. Comparatively, 67.9% of Primis Financial shares are held by institutional investors. 0.6% of Texas Capital Bancshares shares are held by company insiders. Comparatively, 10.6% of Primis Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Texas Capital Bancshares beats Primis Financial on 12 of the 14 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 Primis Financial

(Get Rating)

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.

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