Contrasting Texas Community Bancshares (NASDAQ:TCBS) and Fifth District Bancorp (NASDAQ:FDSB)

Fifth District Bancorp (NASDAQ:FDSB) and Texas Community Bancshares (NASDAQ:TCBS) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. 4.5% of Fifth District Bancorp shares are held by company insiders. Comparatively, 19.5% of Texas Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Fifth District Bancorp and Texas Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Bancorp	14.27%	2.88%	0.69%
Texas Community Bancshares	9.98%	4.77%	0.57%

Risk & Volatility

Fifth District Bancorp has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Texas Community Bancshares has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fifth District Bancorp and Texas Community Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Bancorp	$19.29 million	4.27	-$1.08 million	$0.73	20.44
Texas Community Bancshares	$20.55 million	2.35	-$1.30 million	$0.85	19.52

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Fifth District Bancorp and Texas Community Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Bancorp	1	0	0	0	1.00
Texas Community Bancshares	0	1	0	0	2.00

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.