Texas Capital Bancshares (NASDAQ:TCBI) versus First Financial Bankshares (NASDAQ:FFIN) Financial Contrast

First Financial Bankshares (NASDAQ:FFIN) and Texas Capital Bancshares (NASDAQ:TCBI) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares First Financial Bankshares and Texas Capital Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$752.91 million	7.06	$223.51 million	$1.72	21.61
Texas Capital Bancshares	$1.94 billion	2.04	$77.51 million	$2.52	34.35

First Financial Bankshares has higher earnings, but lower revenue than Texas Capital Bancshares. First Financial Bankshares 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.

Analyst Ratings

This is a summary of current ratings and price targets for First Financial Bankshares and Texas Capital Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	4	0	0	2.00
Texas Capital Bancshares	3	7	4	0	2.07

First Financial Bankshares currently has a consensus price target of $39.25, indicating a potential upside of 5.60%. Texas Capital Bancshares has a consensus price target of $83.50, indicating a potential downside of 3.55%. Given First Financial Bankshares’ higher probable upside, analysts clearly believe First Financial Bankshares is more favorable than Texas Capital Bancshares.

Volatility and Risk

First Financial Bankshares has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares First Financial Bankshares and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	31.01%	14.69%	1.75%
Texas Capital Bancshares	6.79%	10.36%	1.03%

Institutional and Insider Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 4.0% of First Financial Bankshares 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

First Financial Bankshares beats Texas Capital Bancshares on 8 of the 14 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

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.