Analyzing Texas Community Bancshares (NASDAQ:TCBS) & Thomasville Bancshares (OTCMKTS:THVB)

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

Institutional & Insider Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. 19.5% of Texas Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Texas Community Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 3.0%. Texas Community Bancshares pays out 20.0% of its earnings in the form of a dividend. Thomasville Bancshares pays out 41.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Community Bancshares has raised its dividend for 1 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Community Bancshares	$25.57 million	1.88	$2.84 million	$1.00	16.67
Thomasville Bancshares	$137.59 million	4.47	$44.71 million	$7.05	13.76

Thomasville Bancshares has higher revenue and earnings than Texas Community Bancshares. Thomasville Bancshares is trading at a lower price-to-earnings ratio than Texas Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Texas Community Bancshares and Thomasville Bancshares, as provided by MarketBeat.

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Community Bancshares	11.11%	5.34%	0.65%
Thomasville Bancshares	N/A	N/A	N/A

Volatility & Risk

Texas Community Bancshares has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Thomasville Bancshares has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Summary

Texas Community Bancshares beats Thomasville Bancshares on 9 of the 15 factors compared between the two stocks.

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.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.