Five Star Bancorp (NASDAQ:FSBC – Get Free Report) and Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Valuation & Earnings
This table compares Five Star Bancorp and Texas Capital Bancshares”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Five Star Bancorp | $124.96 million | 4.51 | $45.67 million | $2.28 | 11.58 |
| Texas Capital Bancshares | $956.50 million | 3.18 | $77.51 million | $1.74 | 37.95 |
Texas Capital Bancshares has higher revenue and earnings than Five Star Bancorp. Five Star 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Five Star Bancorp | 21.40% | 12.89% | 1.25% |
| Texas Capital Bancshares | 3.99% | 9.14% | 0.89% |
Insider & Institutional Ownership
46.9% of Five Star Bancorp shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 25.6% of Five Star Bancorp shares are owned by company insiders. Comparatively, 1.7% 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 will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations for Five Star Bancorp and Texas Capital Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Five Star Bancorp | 0 | 1 | 3 | 0 | 2.75 |
| Texas Capital Bancshares | 3 | 7 | 4 | 0 | 2.07 |
Five Star Bancorp currently has a consensus target price of $36.38, indicating a potential upside of 37.73%. Texas Capital Bancshares has a consensus target price of $80.36, indicating a potential upside of 21.70%. Given Five Star Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Five Star Bancorp is more favorable than Texas Capital Bancshares.
Risk & Volatility
Five Star Bancorp has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Summary
Five Star Bancorp beats Texas Capital Bancshares on 8 of the 14 factors compared between the two stocks.
About Five Star Bancorp
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
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.
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