Erste Group Bank (OTCMKTS:EBKDY – Get Free Report) and Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk & Volatility
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 Capital Bancshares has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Erste Group Bank and Texas Capital Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Erste Group Bank | 0 | 1 | 5 | 1 | 3.00 |
| Texas Capital Bancshares | 1 | 8 | 4 | 0 | 2.23 |
Dividends
Erste Group Bank pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. Texas Capital Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Erste Group Bank pays out 5.2% of its earnings in the form of a dividend. Texas Capital Bancshares pays out 10.4% 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.
Institutional & Insider Ownership
0.4% of Erste Group Bank shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 1.9% of Texas Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Erste Group Bank and Texas Capital Bancshares”s gross revenue, earnings per share 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 | 11.74 |
| Texas Capital Bancshares | $1.33 billion | 2.98 | $330.24 million | $7.69 | 11.81 |
Erste Group Bank has higher revenue and earnings than Texas Capital Bancshares. Erste Group Bank 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.
Profitability
This table compares Erste Group Bank and Texas Capital 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 Capital Bancshares | 17.90% | 10.86% | 1.10% |
Summary
Texas Capital Bancshares beats Erste Group Bank on 9 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 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.
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