Comparing Third Coast Bancshares (NASDAQ:TCBX) and Hancock Whitney (NASDAQ:HWC)

Hancock Whitney (NASDAQ:HWC) and Third Coast Bancshares (NASDAQ:TCBX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Hancock Whitney and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hancock Whitney	24.05%	11.16%	1.39%
Third Coast Bancshares	16.30%	12.05%	1.17%

Analyst Ratings

This is a breakdown of current ratings and target prices for Hancock Whitney and Third Coast Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hancock Whitney	0	1	7	2	3.10
Third Coast Bancshares	0	2	2	1	2.80

Hancock Whitney currently has a consensus price target of $75.25, suggesting a potential upside of 5.75%. Third Coast Bancshares has a consensus price target of $45.50, suggesting a potential upside of 7.34%. Given Third Coast Bancshares’ higher probable upside, analysts clearly believe Third Coast Bancshares is more favorable than Hancock Whitney.

Insider and Institutional Ownership

81.2% of Hancock Whitney shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 0.9% of Hancock Whitney shares are owned by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Hancock Whitney has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hancock Whitney and Third Coast Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hancock Whitney	$2.02 billion	2.94	$486.07 million	$5.68	12.53
Third Coast Bancshares	$207.74 million	2.83	$47.67 million	$3.79	11.18

Hancock Whitney has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than Hancock Whitney, indicating that it is currently the more affordable of the two stocks.

Dividends

Hancock Whitney pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 39.8%. Hancock Whitney pays out 31.7% of its earnings in the form of a dividend. Third Coast Bancshares pays out 445.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hancock Whitney has increased its dividend for 3 consecutive years.

Summary

Hancock Whitney beats Third Coast Bancshares on 13 of the 18 factors compared between the two stocks.

About Hancock Whitney

Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers. It offers various transaction and savings deposit products consisting of brokered deposits, time deposits, and money market accounts; treasury management services, secured and unsecured loan products including revolving credit facilities, and letters of credit and similar financial guarantees; and trust and investment management services to retirement plans, corporations, and individuals, and investment advisory and brokerage products. The company also provides commercial and industrial loans including real and non-real estate loans; construction and land development loans; and residential mortgages, as well as consumer loans. In addition, it offers commercial finance products to middle market and corporate clients, including leases and related structures; facilitates investments in new market tax credit activities and holding certain foreclosed assets; provides customers access to fixed annuity and life insurance products; and underwriting transactions products, as well as debt and mortgage-related securities. The company was founded in 1899 and is headquartered in Gulfport, Mississippi.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.