Erste Group Bank (OTCMKTS:EBKDY – Get Free Report) and Texas Community Bancshares (NASDAQ:TCBS – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Volatility and Risk
Erste Group Bank has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Texas Community Bancshares has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.
Valuation & Earnings
This table compares Erste Group Bank and Texas Community Bancshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Erste Group Bank | $23.77 billion | 2.00 | $3.97 billion | $5.22 | 11.72 |
| Texas Community Bancshares | $25.57 million | 1.93 | $2.84 million | $1.21 | 14.21 |
Erste Group Bank has higher revenue and earnings than Texas Community Bancshares. Erste Group Bank is trading at a lower price-to-earnings ratio than Texas Community Bancshares, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Erste Group Bank and Texas Community Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Erste Group Bank | 0 | 1 | 5 | 1 | 3.00 |
| Texas Community Bancshares | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Erste Group Bank and Texas Community Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Erste Group Bank | 18.39% | 10.22% | 0.94% |
| Texas Community Bancshares | 12.68% | 6.14% | 0.76% |
Dividends
Erste Group Bank pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Erste Group Bank pays out 5.2% of its earnings in the form of a dividend. Texas Community Bancshares pays out 19.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Community Bancshares has increased its dividend for 1 consecutive years. Texas Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
0.4% of Erste Group Bank shares are owned by institutional investors. Comparatively, 15.8% of Texas Community Bancshares shares are owned by institutional investors. 15.3% of Texas Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Erste Group Bank beats Texas Community Bancshares on 12 of the 17 factors compared between the two stocks.
About Erste Group Bank
Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, and public sector customers. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, cash logistics, and payment factory and cash pooling services; documentary collection, equity interests and investments, revolving export credits lines, letters of credit, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, debt capital markets, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. It operates in Austria, the Czech Republic, Slovakia, Romania, Hungary, Serbia, Croatia, and internationally. The company was founded in 1819 and is headquartered in Vienna, Austria.
About Texas Community Bancshares
Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.
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