TriCo Bancshares (NASDAQ:TCBK – Get Free Report) and Coastal Financial (NASDAQ:CCB – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Volatility and Risk
TriCo Bancshares has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Institutional & Insider Ownership
59.1% of TriCo Bancshares shares are held by institutional investors. Comparatively, 59.2% of Coastal Financial shares are held by institutional investors. 4.9% of TriCo Bancshares shares are held by insiders. Comparatively, 13.5% of Coastal Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TriCo Bancshares | 0 | 2 | 4 | 1 | 2.86 |
| Coastal Financial | 1 | 1 | 4 | 0 | 2.50 |
TriCo Bancshares currently has a consensus price target of $54.60, suggesting a potential upside of 7.69%. Coastal Financial has a consensus price target of $122.60, suggesting a potential upside of 74.45%. Given Coastal Financial’s higher possible upside, analysts clearly believe Coastal Financial is more favorable than TriCo Bancshares.
Profitability
This table compares TriCo Bancshares and Coastal Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TriCo Bancshares | 23.71% | 9.87% | 1.30% |
| Coastal Financial | 7.35% | 10.20% | 1.01% |
Earnings and Valuation
This table compares TriCo Bancshares and Coastal Financial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TriCo Bancshares | $421.16 million | 3.84 | $121.56 million | $3.95 | 12.84 |
| Coastal Financial | $408.97 million | 2.62 | $46.99 million | $3.19 | 22.03 |
TriCo Bancshares has higher revenue and earnings than Coastal Financial. TriCo Bancshares is trading at a lower price-to-earnings ratio than Coastal Financial, indicating that it is currently the more affordable of the two stocks.
Summary
TriCo Bancshares beats Coastal Financial on 8 of the 14 factors compared between the two stocks.
About TriCo Bancshares
TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.
About Coastal Financial
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.
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