Contrasting Triumph Financial (NYSE:TFIN) & ConnectOne Bancorp (NASDAQ:CNOB)

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

Institutional and Insider Ownership

67.7% of ConnectOne Bancorp shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 5.2% of ConnectOne Bancorp shares are held by company insiders. Comparatively, 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ConnectOne Bancorp	20.21%	11.24%	1.17%
Triumph Financial	7.17%	4.69%	0.62%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ConnectOne Bancorp and Triumph Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConnectOne Bancorp	0	1	4	0	2.80
Triumph Financial	0	5	2	0	2.29

ConnectOne Bancorp currently has a consensus target price of $35.00, indicating a potential upside of 16.43%. Triumph Financial has a consensus target price of $84.80, indicating a potential upside of 35.84%. Given Triumph Financial’s higher possible upside, analysts clearly believe Triumph Financial is more favorable than ConnectOne Bancorp.

Risk and Volatility

ConnectOne Bancorp has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConnectOne Bancorp	$461.10 million	3.28	$80.44 million	$3.05	9.86
Triumph Financial	$518.88 million	2.88	$25.36 million	$1.48	42.18

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

Summary

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

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida market. The company offers personal and business checking, money market, and time and savings accounts; credit cards, wire transfers, safe deposit boxes, automated teller services and telephone, and internet and mobile banking. It provides retirement accounts, consumers and cash management services for business clients, including treasury direct, automated clearing house, remote deposit capture, and digital invoicing. In addition, the company offers consumer and commercial business loans, including lines of credit, commercial and residential mortgages, home equity and bridge loans, and other personal loans; commercial loans secured by collateral, such as business assets comprising accounts receivable, inventory and equipment, and mortgages filed on commercial and residential real estate, as well as cash balances and marketable securities. Further, it provides real estate loans, which includes loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance properties; residential mortgages, such as loans secured by first liens on 1-4 family and condominium; and cooperative residential real estate loans. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.