Head-To-Head Contrast: Hanover Bancorp (NASDAQ:HNVR) & Texas Capital Bancshares (NASDAQ:TCBI)

Hanover Bancorp (NASDAQ:HNVR) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Profitability

This table compares Hanover Bancorp and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanover Bancorp	10.93%	7.47%	0.64%
Texas Capital Bancshares	10.56%	7.28%	0.71%

Valuation & Earnings

This table compares Hanover Bancorp and Texas Capital Bancshares’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanover Bancorp	$113.89 million	0.88	$15.16 million	$1.84	7.51
Texas Capital Bancshares	$1.79 billion	1.49	$189.14 million	$3.54	15.94

Texas Capital Bancshares has higher revenue and earnings than Hanover Bancorp. Hanover Bancorp 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.

Volatility & Risk

Hanover Bancorp has a beta of -0.14, indicating that its share price is 114% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanover Bancorp	0	0	1	0	3.00
Texas Capital Bancshares	3	7	1	0	1.82

Hanover Bancorp currently has a consensus price target of $21.00, suggesting a potential upside of 51.95%. Texas Capital Bancshares has a consensus price target of $64.45, suggesting a potential upside of 14.22%. Given Hanover Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hanover Bancorp is more favorable than Texas Capital Bancshares.

Insider and Institutional Ownership

15.0% of Hanover Bancorp shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 24.8% of Hanover Bancorp shares are owned by company insiders. Comparatively, 1.5% of Texas Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Texas Capital Bancshares beats Hanover Bancorp on 8 of the 13 factors compared between the two stocks.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.

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.