Contrasting Triumph Financial (NYSE:TFIN) and Equity Bancshares (NYSE:EQBK)

Triumph Financial (NYSE:TFIN) and Equity Bancshares (NYSE:EQBK) are both small-cap financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Triumph Financial has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Equity Bancshares has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triumph Financial	4.89%	3.53%	0.48%
Equity Bancshares	6.17%	12.37%	1.41%

Analyst Ratings

This is a summary of recent recommendations for Triumph Financial and Equity Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triumph Financial	1	1	0	0	1.50
Equity Bancshares	0	2	0	1	2.67

Triumph Financial presently has a consensus target price of $70.00, suggesting a potential upside of 6.46%. Given Triumph Financial’s higher possible upside, equities analysts clearly believe Triumph Financial is more favorable than Equity Bancshares.

Insider and Institutional Ownership

91.1% of Triumph Financial shares are held by institutional investors. Comparatively, 71.8% of Equity Bancshares shares are held by institutional investors. 5.6% of Triumph Financial shares are held by insiders. Comparatively, 6.6% of Equity Bancshares shares are held by 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triumph Financial	$518.88 million	3.01	$16.09 million	$0.29	226.72
Equity Bancshares	$206.96 million	4.22	$22.73 million	$1.31	34.91

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

Summary

Equity Bancshares beats Triumph Financial on 9 of the 14 factors compared between the two stocks.

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.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company’s loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.