Spirit of Texas Bancshares (NASDAQ:STXB) vs. Silvergate Capital (NYSE:SI) Head to Head Contrast

Spirit of Texas Bancshares (NASDAQ:STXBGet Rating) and Silvergate Capital (NYSE:SIGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares Spirit of Texas Bancshares and Silvergate Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit of Texas Bancshares $139.60 million 3.20 $42.05 million $2.38 10.74
Silvergate Capital $175.65 million 22.83 $78.53 million $2.89 43.88

Silvergate Capital has higher revenue and earnings than Spirit of Texas Bancshares. Spirit of Texas Bancshares is trading at a lower price-to-earnings ratio than Silvergate Capital, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Spirit of Texas Bancshares has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Silvergate Capital has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.

Institutional and Insider Ownership

39.9% of Spirit of Texas Bancshares shares are owned by institutional investors. Comparatively, 83.5% of Silvergate Capital shares are owned by institutional investors. 25.2% of Spirit of Texas Bancshares shares are owned by insiders. Comparatively, 8.5% of Silvergate Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Spirit of Texas Bancshares and Silvergate Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit of Texas Bancshares 0 2 1 0 2.33
Silvergate Capital 0 1 7 0 2.88

Spirit of Texas Bancshares presently has a consensus price target of $30.67, indicating a potential upside of 20.03%. Silvergate Capital has a consensus price target of $205.63, indicating a potential upside of 62.14%. Given Silvergate Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Silvergate Capital is more favorable than Spirit of Texas Bancshares.

Profitability

This table compares Spirit of Texas Bancshares and Silvergate Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit of Texas Bancshares 30.12% 11.21% 1.35%
Silvergate Capital 44.71% 7.36% 0.64%

Summary

Silvergate Capital beats Spirit of Texas Bancshares on 11 of the 14 factors compared between the two stocks.

About Spirit of Texas Bancshares (Get Rating)

Spirit of Texas Bancshares, Inc. operates as the bank holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services. It offers checking, money market, savings, and individual retirement accounts, as well as various certificates of deposit. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner and nonowner-occupied commercial real estate loans, multifamily loans, and farmland loans; consumer loans and leases; and municipal and other loans. In addition, it offers a range of ancillary banking services, including treasury management services, consumer and commercial online banking services, mobile applications, safe deposit boxes, wire transfer services, debit cards, and ATM access. Further, it provides credit card processing and co-branded credit card services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. As of February 26, 2022, it had 35 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio-New Braunfels, Corpus Christi, Austin, and Tyler metropolitan areas, as well as offices in North Central and South Texas. The company serves individuals, professionals, small and medium-sized businesses, and commercial companies. Spirit of Texas Bancshares, Inc. was incorporated in 2008 and is headquartered in Conroe, Texas.

About Silvergate Capital (Get Rating)

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.

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