Analyzing Texas Community Bancshares (NASDAQ:TCBS) and Citizens Bancshares (OTCMKTS:CZBS)

Citizens Bancshares (OTCMKTS:CZBS) and Texas Community Bancshares (NASDAQ:TCBS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Citizens Bancshares and Texas Community Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Bancshares	0	0	0	0	0.00
Texas Community Bancshares	0	1	0	0	2.00

Risk & Volatility

Citizens Bancshares has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Texas Community Bancshares has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Profitability

This table compares Citizens Bancshares and Texas Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens Bancshares	N/A	N/A	N/A
Texas Community Bancshares	9.98%	4.77%	0.57%

Earnings and Valuation

This table compares Citizens Bancshares and Texas Community Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Bancshares	$44.68 million	1.89	$12.88 million	N/A	N/A
Texas Community Bancshares	$20.55 million	2.35	-$1.30 million	$0.85	19.52

Citizens Bancshares has higher revenue and earnings than Texas Community Bancshares.

Insider and Institutional Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. 10.2% of Citizens Bancshares shares are held by company insiders. Comparatively, 19.5% of Texas Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Citizens Bancshares pays an annual dividend of $1.10 per share and has a dividend yield of 2.3%. Texas Community Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Texas Community Bancshares pays out 23.5% of its earnings in the form of a dividend. Texas Community Bancshares has increased its dividend for 1 consecutive years.

Summary

Texas Community Bancshares beats Citizens Bancshares on 8 of the 13 factors compared between the two stocks.

About Citizens Bancshares

Citizens Bancshares Corporation operates as the holding company for Citizens Trust Bank that provides various commercial banking services to individual and corporate customers. The company offers checking and savings accounts; and demand and money market deposits. Its loan products include commercial, financial, and agricultural loans; loans secured by personal property, such as automobiles, marketable securities, and other titled recreational vehicles and motorcycles, as well as unsecured consumer debt; commercial real estate loans; single-family residential loans; and construction and development loans. The company also offers investment accounts and certificate of deposit account registry services. In addition, it provides merchant services, which include point of sale terminal, credit and debit card processing, electronic benefits transfer, gift card, and Internet shopping cart services; cash management services; and credit cards. Further, the company offers online and mobile banking, as well as check reorder services. Citizens Bancshares Corporation was founded in 1921 and is headquartered in Atlanta, Georgia.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.