Triumph Bancorp (NASDAQ: TBK) and Green Bancorp (NASDAQ:GNBC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

51.5% of Triumph Bancorp shares are held by institutional investors. Comparatively, 57.2% of Green Bancorp shares are held by institutional investors. 12.4% of Triumph Bancorp shares are held by company insiders. Comparatively, 16.7% of Green Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Triumph Bancorp and Green Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triumph Bancorp 0 1 3 0 2.75
Green Bancorp 0 2 2 0 2.50

Triumph Bancorp presently has a consensus target price of $28.00, suggesting a potential upside of 10.67%. Green Bancorp has a consensus target price of $14.50, suggesting a potential downside of 28.40%. Given Triumph Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Triumph Bancorp is more favorable than Green Bancorp.

Profitability

This table compares Triumph Bancorp and Green Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triumph Bancorp 14.60% 6.26% 0.72%
Green Bancorp 2.56% 1.03% 0.11%

Risk and Volatility

Triumph Bancorp has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Earnings and Valuation

This table compares Triumph Bancorp and Green Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Triumph Bancorp $129.21 million 3.52 $24.79 million $1.38 18.33
Green Bancorp $92.73 million 8.08 $4.07 million $0.11 184.11

Triumph Bancorp has higher revenue and earnings than Green Bancorp. Triumph Bancorp is trading at a lower price-to-earnings ratio than Green Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Triumph Bancorp beats Green Bancorp on 9 of the 14 factors compared between the two stocks.

About Triumph Bancorp

Triumph Bancorp, Inc. is a financial holding company. Through its bank subsidiary, TBK Bank, SSB (TBK Bank), the Company offers traditional banking services, as well as commercial finance products. The Company operates through four segments: Banking, Factoring, Asset Management and Corporate. The Factoring segment includes the operations of Triumph Business Capital with revenue derived from factoring services. The Banking segment includes the operations of TBK Bank, including loans originated under its Triumph Commercial Finance, Triumph Healthcare Finance and Triumph Premium Finance brands. The Asset Management segment includes the operations of Triumph Capital Advisors, LLC with revenue derived from fees for providing other services related to collateralized loan obligation funds. The Corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company.

About Green Bancorp

Green Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company’s subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provided commercial and private banking services primarily to Texas based customers through 22 full service branches in the Houston and Dallas metropolitan statistical areas (MSAs) and other markets. The Company provides banking services to a range of customers. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as extended drive through hours, automated teller machines (ATMs), Bank at Work and banking by telephone, mail and personal appointment. The Company also offers debit cards, night depository, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, wire transfer services and automated clearing house (ACH) services.

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