Mechanics Bancorp (NASDAQ:MCHB – Get Free Report) and Triumph Financial (NYSE:TFIN – Get Free Report) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Profitability
This table compares Mechanics Bancorp and Triumph Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mechanics Bancorp | -14.49% | 4.74% | 0.41% |
| Triumph Financial | 2.00% | 1.76% | 0.24% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Mechanics Bancorp and Triumph Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mechanics Bancorp | 0 | 2 | 0 | 0 | 2.00 |
| Triumph Financial | 1 | 0 | 0 | 0 | 1.00 |
Volatility and Risk
Mechanics Bancorp has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Institutional & Insider Ownership
74.7% of Mechanics Bancorp shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 4.6% of Mechanics Bancorp shares are owned by insiders. Comparatively, 5.6% of Triumph Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Mechanics Bancorp and Triumph Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mechanics Bancorp | $358.19 million | 8.99 | -$144.34 million | ($6.76) | -2.15 |
| Triumph Financial | $487.93 million | 3.02 | $16.09 million | $0.29 | 214.17 |
Triumph Financial has higher revenue and earnings than Mechanics Bancorp. Mechanics Bancorp 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
Triumph Financial beats Mechanics Bancorp on 7 of the 13 factors compared between the two stocks.
About Mechanics Bancorp
HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.
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.
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