Isabella Bank (NASDAQ:ISBA) vs. Triumph Financial (NYSE:TFIN) Financial Analysis

Triumph Financial (NYSE:TFIN) and Isabella Bank (NASDAQ:ISBA) are both small-cap financial services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for Triumph Financial and Isabella Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triumph Financial	1	0	0	0	1.00
Isabella Bank	0	1	1	1	3.00

Isabella Bank has a consensus price target of $38.50, indicating a potential downside of 16.67%. Given Isabella Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Isabella Bank is more favorable than Triumph Financial.

Profitability

This table compares Triumph Financial and Isabella Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Triumph Financial	2.00%	1.76%	0.24%
Isabella Bank	16.65%	8.01%	0.81%

Earnings & Valuation

This table compares Triumph Financial and Isabella Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triumph Financial	$487.93 million	2.99	$16.09 million	$0.29	211.69
Isabella Bank	$104.55 million	3.24	$13.89 million	$2.46	18.78

Triumph Financial has higher revenue and earnings than Isabella Bank. Isabella Bank is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

91.1% of Triumph Financial shares are held by institutional investors. 5.6% of Triumph Financial shares are held by company insiders. Comparatively, 9.7% of Isabella Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Triumph Financial has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Isabella Bank has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Summary

Isabella Bank beats Triumph Financial on 10 of the 15 factors compared between the two stocks.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.

About Isabella Bank

Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides various banking products and services to businesses, institutions, and individuals and their families. Its deposit products include checking accounts, savings accounts, certificates of deposit, direct deposits, and money market accounts. The company’s loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. It also offers cash management, mobile and internet banking, electronic bill pay, automated teller machines, trust and investment, estate planning, and safe deposit box rental services; and group life, health, accident, disability, and other insurance products, as well as other employee benefit programs. As of December 31, 2021, the company operated 30 banking offices in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.