Critical Contrast: Benchmark Bankshares (OTCMKTS:BMBN) versus Third Coast Bancshares (NASDAQ:TCBX)

Benchmark Bankshares (OTCMKTS:BMBN) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Profitability

This table compares Benchmark Bankshares and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benchmark Bankshares	23.75%	N/A	N/A
Third Coast Bancshares	16.30%	12.05%	1.17%

Analyst Ratings

This is a summary of current recommendations for Benchmark Bankshares and Third Coast Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benchmark Bankshares	0	0	0	0	0.00
Third Coast Bancshares	0	2	2	1	2.80

Third Coast Bancshares has a consensus target price of $42.67, suggesting a potential upside of 6.89%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than Benchmark Bankshares.

Dividends

Benchmark Bankshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.7%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 42.3%. Benchmark Bankshares pays out 22.4% 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.

Insider & Institutional Ownership

3.2% of Benchmark Bankshares shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 14.0% of Benchmark Bankshares shares are held by insiders. Comparatively, 10.3% of Third Coast Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Benchmark Bankshares has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares Benchmark Bankshares and Third Coast Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benchmark Bankshares	$73.53 million	2.12	$15.85 million	$4.29	8.16
Third Coast Bancshares	$197.80 million	2.80	$47.67 million	$3.56	11.21

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

Summary

Third Coast Bancshares beats Benchmark Bankshares on 13 of the 17 factors compared between the two stocks.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.

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.