Head-To-Head Comparison: First BanCorp. (NYSE:FBP) vs. Third Coast Bancshares (NASDAQ:TCBX)

First BanCorp. (NYSE:FBP) and Third Coast Bancshares (NASDAQ:TCBX) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares First BanCorp. and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	28.31%	17.51%	1.76%
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

First BanCorp. pays an annual dividend of $0.80 per share and has a dividend yield of 3.2%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 41.9%. First BanCorp. pays out 35.6% of its earnings in the form of a dividend. Third Coast Bancshares pays out 433.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First BanCorp. has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for First BanCorp. and Third Coast Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	3	2	3.00
Third Coast Bancshares	0	2	3	0	2.60

First BanCorp. presently has a consensus price target of $25.86, indicating a potential upside of 4.37%. Third Coast Bancshares has a consensus price target of $45.00, indicating a potential upside of 11.88%. Given Third Coast Bancshares’ higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than First BanCorp..

Insider and Institutional Ownership

97.9% of First BanCorp. shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 1.9% of First BanCorp. shares are owned by company insiders. Comparatively, 10.5% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares First BanCorp. and Third Coast Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	3.05	$344.87 million	$2.25	11.01
Third Coast Bancshares	$219.24 million	3.04	$47.67 million	$3.89	10.34

First BanCorp. has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than First BanCorp., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

First BanCorp. has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Summary

First BanCorp. beats Third Coast Bancshares on 12 of the 17 factors compared between the two stocks.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.