Third Coast Bancshares (NASDAQ:TCBX) vs. Community Trust Bancorp (NASDAQ:CTBI) Head-To-Head Review

Community Trust Bancorp (NASDAQ:CTBI) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional and Insider Ownership

60.2% of Community Trust Bancorp shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 2.3% of Community Trust Bancorp shares are owned by company insiders. Comparatively, 10.3% of Third Coast Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Community Trust Bancorp and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	23.24%	11.73%	1.46%
Third Coast Bancshares	16.30%	12.05%	1.17%

Valuation & Earnings

This table compares Community Trust Bancorp and Third Coast Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$376.01 million	2.76	$82.81 million	$5.17	11.09
Third Coast Bancshares	$197.80 million	2.68	$47.67 million	$3.56	10.70

Community Trust Bancorp has higher revenue and earnings than Third Coast Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than Community Trust Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 3.7%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 44.3%. Community Trust Bancorp pays out 41.0% of its earnings in the form of a dividend. Third Coast Bancshares pays out 473.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Trust Bancorp has increased its dividend for 44 consecutive years.

Volatility & Risk

Community Trust Bancorp has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Community Trust Bancorp and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	0	3	0	3.00
Third Coast Bancshares	0	2	2	1	2.80

Community Trust Bancorp presently has a consensus target price of $63.50, indicating a potential upside of 10.78%. Third Coast Bancshares has a consensus target price of $42.67, indicating a potential upside of 11.98%. Given Third Coast Bancshares’ higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than Community Trust Bancorp.

Summary

Community Trust Bancorp beats Third Coast Bancshares on 12 of the 18 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.