TriCo Bancshares (NASDAQ:TCBK) and Stock Yards Bancorp (NASDAQ:SYBT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
This is a breakdown of current ratings and price targets for TriCo Bancshares and Stock Yards Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stock Yards Bancorp||0||1||0||0||2.00|
TriCo Bancshares presently has a consensus target price of $44.00, suggesting a potential upside of 12.33%. Stock Yards Bancorp has a consensus target price of $36.00, suggesting a potential upside of 4.26%. Given TriCo Bancshares’ stronger consensus rating and higher probable upside, equities research analysts clearly believe TriCo Bancshares is more favorable than Stock Yards Bancorp.
Valuation and Earnings
This table compares TriCo Bancshares and Stock Yards Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriCo Bancshares||$277.50 million||4.29||$68.32 million||$2.69||14.56|
|Stock Yards Bancorp||$175.12 million||4.49||$55.52 million||$2.42||14.27|
TriCo Bancshares has higher revenue and earnings than Stock Yards Bancorp. Stock Yards Bancorp is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.
TriCo Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. Stock Yards Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. TriCo Bancshares pays out 28.3% of its earnings in the form of a dividend. Stock Yards Bancorp pays out 41.3% 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. TriCo Bancshares has raised its dividend for 5 consecutive years and Stock Yards Bancorp has raised its dividend for 7 consecutive years. Stock Yards Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
TriCo Bancshares has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
This table compares TriCo Bancshares and Stock Yards Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stock Yards Bancorp||31.70%||15.83%||1.68%|
Insider and Institutional Ownership
60.9% of TriCo Bancshares shares are held by institutional investors. Comparatively, 50.8% of Stock Yards Bancorp shares are held by institutional investors. 14.2% of TriCo Bancshares shares are held by company insiders. Comparatively, 8.3% of Stock Yards Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
TriCo Bancshares beats Stock Yards Bancorp on 11 of the 17 factors compared between the two stocks.
TriCo Bancshares Company Profile
TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. It accepts demand, savings, and money market accounts, as well as time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; and other customary banking services, including safe deposit boxes. Further, it provides independent financial and broker-dealer services. The company operates 69 traditional branches, 9 in-store branches, and 2 loan production offices in northern and central California. TriCo Bancshares was incorporated in 1974 and is headquartered in Chico, California.
Stock Yards Bancorp Company Profile
Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, money market deposits, and time deposits. The company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans; and originates and sells single-family residential mortgages. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, trust, employee benefit plan, estate administration, and financial planning services. As of December 31, 2018, the company had 38 full service banking locations, including 28 in the Louisville metropolitan statistical area (MSA), 5 in Indianapolis MSA, and 5 in Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.
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