Critical Review: Triumph Financial (NASDAQ:TFIN) versus ALT5 Sigma (NASDAQ:ALTS)

ALT5 Sigma (NASDAQ:ALTS) and Triumph Financial (NASDAQ:TFIN) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares ALT5 Sigma and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ALT5 Sigma	-74.89%	-179.27%	-16.28%
Triumph Financial	2.75%	1.79%	0.25%

Valuation & Earnings

This table compares ALT5 Sigma and Triumph Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ALT5 Sigma	$12.53 million	14.96	-$6.24 million	N/A	N/A
Triumph Financial	$422.32 million	3.29	$16.09 million	$0.29	201.39

Triumph Financial has higher revenue and earnings than ALT5 Sigma.

Risk & Volatility

ALT5 Sigma has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for ALT5 Sigma and Triumph Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ALT5 Sigma	1	0	0	0	1.00
Triumph Financial	0	3	1	0	2.25

Triumph Financial has a consensus price target of $62.00, suggesting a potential upside of 6.16%. Given Triumph Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Triumph Financial is more favorable than ALT5 Sigma.

Insider & Institutional Ownership

6.3% of ALT5 Sigma shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 0.7% of ALT5 Sigma shares are held by company insiders. Comparatively, 5.6% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Triumph Financial beats ALT5 Sigma on 10 of the 12 factors compared between the two stocks.

About ALT5 Sigma

ALT5 Sigma Corp. is a clinical-stage biopharmaceutical company, which engages in identifying, acquiring, licensing, developing, partnering, and commercializing novel, non-opioid, and non-addictive therapies to address the large unmet medical need for the treatment of pain and addiction. It operates under the Biotechnology and Recycling segments. The Biotechnology segment focuses on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties. The Recycling segment is involved in a turnkey appliance recycling program. The company was founded by Edward R. Cameron in 1976 and is headquartered in Las Vegas, NV.

About Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.