Comparing Sierra Bancorp (NASDAQ:BSRR) and Texas Capital Bancshares (NASDAQ:TCBI)

Texas Capital Bancshares (NASDAQ:TCBI) and Sierra Bancorp (NASDAQ:BSRR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Valuation and Earnings

This table compares Texas Capital Bancshares and Sierra Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Capital Bancshares	$894.52 million	3.96	$189.14 million	$0.18	425.78
Sierra Bancorp	$125.24 million	3.27	$34.84 million	$2.52	11.27

Texas Capital Bancshares has higher revenue and earnings than Sierra Bancorp. Sierra Bancorp 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.

Volatility & Risk

Texas Capital Bancshares has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Sierra Bancorp has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

96.9% of Texas Capital Bancshares shares are held by institutional investors. Comparatively, 55.4% of Sierra Bancorp shares are held by institutional investors. 1.0% of Texas Capital Bancshares shares are held by company insiders. Comparatively, 11.9% of Sierra Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Texas Capital Bancshares and Sierra Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Capital Bancshares	1.40%	8.06%	0.79%
Sierra Bancorp	17.91%	10.48%	1.00%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Texas Capital Bancshares and Sierra Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Capital Bancshares	4	8	4	0	2.00
Sierra Bancorp	0	2	0	0	2.00

Texas Capital Bancshares presently has a consensus price target of $74.75, indicating a potential downside of 2.47%. Sierra Bancorp has a consensus price target of $29.00, indicating a potential upside of 2.08%. Given Sierra Bancorp’s higher probable upside, analysts clearly believe Sierra Bancorp is more favorable than Texas Capital Bancshares.

Summary

Texas Capital Bancshares beats Sierra Bancorp on 7 of the 13 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 Sierra Bancorp

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. It accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. The company's loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. It also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.