Head to Head Review: TriCo Bancshares (NASDAQ:TCBK) vs. Allegiance Bancshares (NASDAQ:ABTX)

TriCo Bancshares (NASDAQ:TCBKGet Rating) and Allegiance Bancshares (NASDAQ:ABTXGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

TriCo Bancshares has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Allegiance Bancshares has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

57.7% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 54.6% of Allegiance Bancshares shares are owned by institutional investors. 4.1% of TriCo Bancshares shares are owned by company insiders. Comparatively, 5.8% of Allegiance Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares TriCo Bancshares and Allegiance Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TriCo Bancshares $340.71 million 4.36 $117.65 million $3.48 12.62
Allegiance Bancshares $261.75 million 3.07 $81.55 million $4.02 9.80

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

Profitability

This table compares TriCo Bancshares and Allegiance Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriCo Bancshares 30.61% 10.29% 1.18%
Allegiance Bancshares 31.43% 10.42% 1.19%

Analyst Ratings

This is a breakdown of current recommendations for TriCo Bancshares and Allegiance Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriCo Bancshares 0 0 5 0 3.00
Allegiance Bancshares 0 0 0 0 N/A

TriCo Bancshares presently has a consensus price target of $48.40, suggesting a potential upside of 10.20%. Given TriCo Bancshares’ higher possible upside, research analysts plainly believe TriCo Bancshares is more favorable than Allegiance Bancshares.

Dividends

TriCo Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Allegiance Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. TriCo Bancshares pays out 28.7% of its earnings in the form of a dividend. Allegiance Bancshares pays out 13.9% 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. TriCo Bancshares has increased its dividend for 1 consecutive years and Allegiance Bancshares has increased its dividend for 2 consecutive years.

About TriCo Bancshares (Get Rating)

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. It operates 61 traditional branches, 7 in-store branches, and 7 loan production offices in 31 counties throughout California. The company was founded in 1975 and is headquartered in Chico, California.

About Allegiance Bancshares (Get Rating)

Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company's loan portfolio comprises commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machine services, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2021, it operated 27 full-service banking locations, including 26 bank offices in the Houston metropolitan area and one office in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.

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