Head to Head Survey: Triumph Financial (NYSE:TFIN) and Community West Bancshares (NASDAQ:CWBC)

Community West Bancshares (NASDAQ:CWBC) and Triumph Financial (NYSE:TFIN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Community West Bancshares and Triumph Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community West Bancshares	0	2	3	1	2.83
Triumph Financial	0	5	2	0	2.29

Community West Bancshares currently has a consensus price target of $28.83, suggesting a potential upside of 8.52%. Triumph Financial has a consensus price target of $78.80, suggesting a potential upside of 20.81%. Given Triumph Financial’s higher possible upside, analysts plainly believe Triumph Financial is more favorable than Community West Bancshares.

Risk and Volatility

Community West Bancshares has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares Community West Bancshares and Triumph Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community West Bancshares	$196.20 million	3.67	$38.17 million	$1.58	16.82
Triumph Financial	$457.41 million	3.41	$25.36 million	$1.96	33.28

Community West Bancshares has higher earnings, but lower revenue than Triumph Financial. Community West 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community West Bancshares	14.05%	11.14%	1.29%
Triumph Financial	8.96%	5.57%	0.72%

Insider & Institutional Ownership

33.8% of Community West Bancshares shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 9.0% of Community West Bancshares shares are held by company insiders. Comparatively, 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Community West Bancshares beats Triumph Financial on 9 of the 15 factors compared between the two stocks.

About Community West Bancshares

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposits; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.