Contrasting LCNB (NASDAQ:LCNB) and Triumph Financial (NYSE:TFIN)

Triumph Financial (NYSE:TFIN) and LCNB (NASDAQ:LCNB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Triumph Financial and LCNB, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Triumph Financial	0	5	2	0	2.29
LCNB	0	2	1	0	2.33

Triumph Financial currently has a consensus price target of $78.80, indicating a potential upside of 28.57%. LCNB has a consensus price target of $20.00, indicating a potential upside of 2.28%. Given Triumph Financial’s higher probable upside, research analysts clearly believe Triumph Financial is more favorable than LCNB.

Earnings & Valuation

This table compares Triumph Financial and LCNB”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Triumph Financial	$518.88 million	2.83	$25.36 million	$1.96	31.27
LCNB	$97.57 million	2.86	$23.12 million	$1.75	11.17

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Triumph Financial	8.96%	5.57%	0.72%
LCNB	20.02%	8.95%	1.11%

Institutional and Insider Ownership

91.1% of Triumph Financial shares are held by institutional investors. Comparatively, 34.7% of LCNB shares are held by institutional investors. 5.5% of Triumph Financial shares are held by insiders. Comparatively, 5.7% of LCNB shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Triumph Financial has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, LCNB has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Summary

Triumph Financial beats LCNB on 8 of the 14 factors compared between the two stocks.

About Triumph Financial

Triumph Financial, Inc. is a financial services company focused on payments, factoring and banking, with a particular emphasis on the transportation industry. Its services include freight-payment solutions through TriumphPay, invoice factoring through Triumph Business Capital and commercial banking through TBK Bank. TriumphPay connects freight brokers, carriers and other participants in the transportation-payment process, offering tools for invoice management, payment processing and related services.

About LCNB

LCNB Corporation is a bank holding company headquartered in Lebanon, Ohio. Its principal subsidiary, LCNB National Bank, operates as a community bank serving individuals, families, businesses and nonprofit organizations. LCNB National Bank provides a range of traditional banking products and services, including checking and savings accounts, certificates of deposit, consumer and commercial loans, residential mortgages, home equity financing and agricultural lending. The bank also offers digital banking, treasury management and other cash-management services designed to support personal and business customers.