Critical Comparison: Texas Capital Bancshares (NASDAQ:TCBI) vs. Chino Commercial Bancorp (OTCMKTS:CCBC)

Texas Capital Bancshares (NASDAQ:TCBI) and Chino Commercial Bancorp (OTCMKTS:CCBC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Capital Bancshares	15.14%	9.51%	0.96%
Chino Commercial Bancorp	22.97%	N/A	N/A

Insider & Institutional Ownership

96.9% of Texas Capital Bancshares shares are held by institutional investors. 1.7% of Texas Capital Bancshares shares are held by insiders. Comparatively, 32.5% of Chino Commercial Bancorp shares are held by 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.

Earnings & Valuation

This table compares Texas Capital Bancshares and Chino Commercial Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Capital Bancshares	$1.21 billion	3.23	$77.51 million	$6.11	14.04
Chino Commercial Bancorp	$25.24 million	2.12	$5.14 million	$1.81	9.20

Texas Capital Bancshares has higher revenue and earnings than Chino Commercial Bancorp. Chino Commercial 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

Texas Capital Bancshares has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Chino Commercial Bancorp has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Texas Capital Bancshares and Chino Commercial Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Capital Bancshares	3	7	4	0	2.07
Chino Commercial Bancorp	0	0	0	0	0.00

Texas Capital Bancshares presently has a consensus price target of $88.10, indicating a potential upside of 2.68%. Given Texas Capital Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Texas Capital Bancshares is more favorable than Chino Commercial Bancorp.

Summary

Texas Capital Bancshares beats Chino Commercial Bancorp on 12 of the 14 factors compared between the two stocks.

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.

About Chino Commercial Bancorp

Chino Commercial Bancorp operates as the bank holding company for Chino Commercial Bank, N.A. that provides commercial banking services to individuals and small businesses primarily in the Inland Empire region of Southern California. The company's deposit products include non-interest bearing deposits, money market accounts, NOW and savings accounts, and certificates of deposit accounts. It also provides loan products, such as one-to-four family residential, residential, construction, commercial real estate, and commercial and industrial loans, as well as loans to individuals for overdraft protection and personal lines of credit. In addition, the company offers credit and debit card, wire transfer, and online and mobile banking services. It operates full-service branches in Chino, Ontario, Rancho Cucamonga, and Upland, California. The company was founded in 1999 and is headquartered in Chino, California.