International Bancshares (NASDAQ:IBOC – Get Free Report) and Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
65.9% of International Bancshares shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 13.4% of International Bancshares shares are owned by insiders. Comparatively, 1.9% of Texas Capital Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
International Bancshares has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Bancshares | $1.06 billion | 4.29 | $412.29 million | $6.70 | 10.86 |
| Texas Capital Bancshares | $2.00 billion | 2.17 | $330.24 million | $7.44 | 13.36 |
International Bancshares has higher earnings, but lower revenue than Texas Capital Bancshares. International Bancshares 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.
Analyst Recommendations
This is a summary of recent recommendations for International Bancshares and Texas Capital Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Bancshares | 0 | 0 | 0 | 1 | 4.00 |
| Texas Capital Bancshares | 3 | 6 | 4 | 0 | 2.08 |
International Bancshares currently has a consensus price target of $85.00, indicating a potential upside of 16.79%. Texas Capital Bancshares has a consensus price target of $104.09, indicating a potential upside of 4.73%. Given International Bancshares’ stronger consensus rating and higher possible upside, equities analysts clearly believe International Bancshares is more favorable than Texas Capital Bancshares.
Profitability
This table compares International Bancshares and Texas Capital Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Bancshares | 39.33% | 13.16% | 2.52% |
| Texas Capital Bancshares | 17.71% | 10.76% | 1.10% |
Summary
International Bancshares beats Texas Capital Bancshares on 10 of the 15 factors compared between the two stocks.
About International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.
About Texas Capital Bancshares
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 solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.
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