Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) and Southside Bancshares (NYSE:SBSI – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Insider and Institutional Ownership
96.9% of Texas Capital Bancshares shares are held by institutional investors. Comparatively, 55.7% of Southside Bancshares shares are held by institutional investors. 1.7% of Texas Capital Bancshares shares are held by company insiders. Comparatively, 6.0% of Southside Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Texas Capital Bancshares and Southside Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Texas Capital Bancshares | 3 | 8 | 4 | 0 | 2.07 |
| Southside Bancshares | 0 | 1 | 0 | 0 | 2.00 |
Volatility & Risk
Texas Capital Bancshares has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Southside Bancshares has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Profitability
This table compares Texas Capital Bancshares and Southside Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Texas Capital Bancshares | 15.14% | 9.51% | 0.96% |
| Southside Bancshares | 15.58% | 10.94% | 1.07% |
Earnings and Valuation
This table compares Texas Capital Bancshares and Southside Bancshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Texas Capital Bancshares | $1.94 billion | 2.31 | $77.51 million | $6.11 | 16.04 |
| Southside Bancshares | $456.07 million | 2.13 | $88.49 million | $2.30 | 14.03 |
Southside Bancshares has lower revenue, but higher earnings than Texas Capital Bancshares. Southside 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.
Summary
Texas Capital Bancshares beats Southside Bancshares on 9 of the 14 factors compared between the two stocks.
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.
About Southside Bancshares
Southside Bancshares, Inc. operates as the bank holding company for Southside Bank that provides a range of financial services to individuals, businesses, municipal entities, and nonprofit organizations. Its deposit products include savings, money market, and interest and noninterest bearing checking accounts, as well as certificates of deposit. The company’s loan portfolio comprises consumer loans that include 1-4 family residential loans, home equity loans, home improvement loans, automobile loans, and other consumer related loans; commercial loans, such as short-term working capital loans for inventory and accounts receivable, short and medium-term loans for equipment or other business capital expansion, commercial real estate loans, and municipal loans; and construction loans for 1-4 family residential and commercial real estate. It also offers wealth management and trust services consisting of investment management, administration, revocable and testamentary trusts, and custodian services for individuals, partnerships, and corporations; safe deposit services; and brokerage services. As of December 31, 2021, the company operated through 56 banking facilities and 73 ATMs/ITMs. Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.
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