Third Coast Bancshares (NASDAQ:TCBX) vs. Oak Ridge Financial Services (OTCMKTS:BKOR) Head to Head Comparison

Third Coast Bancshares (NASDAQ:TCBX) and Oak Ridge Financial Services (OTCMKTS:BKOR) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Third Coast Bancshares and Oak Ridge Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Third Coast Bancshares	$186.02 million	2.79	$47.67 million	$3.27	11.45
Oak Ridge Financial Services	$41.04 million	1.82	$5.67 million	$2.48	10.97

Third Coast Bancshares has higher revenue and earnings than Oak Ridge Financial Services. Oak Ridge Financial Services is trading at a lower price-to-earnings ratio than Third Coast Bancshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Third Coast Bancshares has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Oak Ridge Financial Services has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Third Coast Bancshares and Oak Ridge Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	3	2	0	2.40
Oak Ridge Financial Services	0	0	0	0	0.00

Third Coast Bancshares currently has a consensus target price of $40.00, suggesting a potential upside of 6.87%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Third Coast Bancshares is more favorable than Oak Ridge Financial Services.

Insider and Institutional Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 4.2% of Oak Ridge Financial Services shares are held by institutional investors. 10.3% of Third Coast Bancshares shares are held by company insiders. Comparatively, 25.6% of Oak Ridge Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Third Coast Bancshares and Oak Ridge Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
Oak Ridge Financial Services	15.83%	N/A	N/A

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 45.1%. Oak Ridge Financial Services pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Third Coast Bancshares pays out 515.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oak Ridge Financial Services pays out 22.6% of its earnings in the form of a dividend.

Summary

Third Coast Bancshares beats Oak Ridge Financial Services on 14 of the 16 factors compared between the two stocks.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.

About Oak Ridge Financial Services

Oak Ridge Financial Services, Inc. operates as a bank holding company for Bank of Oak Ridge that provides various banking products and services for individuals and businesses. It offers checking, savings, and money market accounts; overdrafts; auto, home equity, mortgage, business term, and business SBA loans; business lines of credit; credit cards; and online and mobile banking products and services. The company also provides health savings accounts, identity theft protection, wealth management, cash management, and remote deposit capture services; and auto, home, small business, renters, life, boat and watercraft, classic car, motorcycle, flood, pet, and umbrella insurance products. It operates through a network of branches in Oak Ridge, Greensboro, and Summerfield, North Carolina. The company was founded in 2000 and is based in Oak Ridge, North Carolina.