Third Coast Bancshares (NASDAQ:TCBX – Get Free Report) and NB Bancorp (NASDAQ:NBBK – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Profitability
This table compares Third Coast Bancshares and NB Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Third Coast Bancshares | 14.06% | 10.93% | 1.04% |
| NB Bancorp | 13.86% | 6.04% | 0.93% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Third Coast Bancshares and NB Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Third Coast Bancshares | 0 | 3 | 1 | 0 | 2.25 |
| NB Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Volatility and Risk
Third Coast Bancshares has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, NB Bancorp has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Valuation and Earnings
This table compares Third Coast Bancshares and NB Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Third Coast Bancshares | $170.48 million | 2.29 | $47.67 million | $2.77 | 10.22 |
| NB Bancorp | $172.73 million | 3.82 | $42.15 million | $1.07 | 14.73 |
Third Coast Bancshares has higher earnings, but lower revenue than NB Bancorp. Third Coast Bancshares is trading at a lower price-to-earnings ratio than NB Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
36.9% of Third Coast Bancshares shares are held by institutional investors. 10.2% of Third Coast Bancshares shares are held by company insiders. Comparatively, 1.9% of NB Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Third Coast Bancshares beats NB Bancorp on 7 of the 13 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 NB Bancorp
NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.
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