Mechanics Bancorp (NASDAQ:MCHB) & Triumph Financial (NYSE:TFIN) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mechanics Bancorp	-14.49%	4.74%	0.41%
Triumph Financial	2.00%	1.76%	0.24%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mechanics Bancorp	0	2	0	0	2.00
Triumph Financial	1	0	0	0	1.00

Mechanics Bancorp presently has a consensus target price of $14.50, suggesting a potential downside of 1.56%. Given Mechanics Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mechanics Bancorp is more favorable than Triumph Financial.

Insider & Institutional Ownership

74.7% of Mechanics Bancorp shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 4.6% of Mechanics Bancorp shares are owned by company insiders. Comparatively, 5.6% of Triumph Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Mechanics Bancorp and Triumph Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mechanics Bancorp	$358.19 million	9.10	-$144.34 million	($6.76)	-2.18
Triumph Financial	$487.93 million	3.09	$16.09 million	$0.29	218.93

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

Volatility and Risk

Mechanics Bancorp has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Summary

Triumph Financial beats Mechanics Bancorp on 7 of the 13 factors compared between the two stocks.

About Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.

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.