First Guaranty Bancshares (NASDAQ:FGBI) & Third Coast Bancshares (NASDAQ:TCBX) Head to Head Contrast

First Guaranty Bancshares (NASDAQ:FGBI) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

First Guaranty Bancshares pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 45.1%. First Guaranty Bancshares pays out -4.0% of its earnings in the form of a dividend. Third Coast Bancshares pays out 473.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and price targets for First Guaranty Bancshares and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Guaranty Bancshares	2	0	0	0	1.00
Third Coast Bancshares	0	2	2	1	2.80

Third Coast Bancshares has a consensus target price of $42.67, suggesting a potential upside of 14.13%. Given Third Coast Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Third Coast Bancshares is more favorable than First Guaranty Bancshares.

Volatility & Risk

First Guaranty Bancshares has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Guaranty Bancshares and Third Coast Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Guaranty Bancshares	$96.48 million	0.93	$12.45 million	($1.01)	-5.86
Third Coast Bancshares	$197.80 million	2.63	$47.67 million	$3.56	10.50

Third Coast Bancshares has higher revenue and earnings than First Guaranty Bancshares. First Guaranty Bancshares 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.

Profitability

This table compares First Guaranty Bancshares and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Guaranty Bancshares	-4.49%	-4.73%	-0.27%
Third Coast Bancshares	16.30%	12.05%	1.17%

Insider and Institutional Ownership

39.5% of First Guaranty Bancshares shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 47.2% of First Guaranty Bancshares shares are held by insiders. Comparatively, 10.3% of Third Coast Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Third Coast Bancshares beats First Guaranty Bancshares on 13 of the 17 factors compared between the two stocks.

About First Guaranty Bancshares

First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits to consumers, small businesses, and municipalities. The company provides loans, such as non-farm, non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, multifamily loans, construction and land development loans, agricultural loans, farmland loans, and consumer and other loans to small to medium-sized businesses and professionals, and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, automated teller machines, and online bill pay; provides additional solutions, such as merchant services, remote deposit capture, and lockbox services to business customers; and invests a portion of its assets in securities issued by the United States Government and its agencies, state and municipal obligations, corporate debt securities, mutual funds, and equity securities, as well as invests in mortgage-backed securities primarily issued or guaranteed by United States Government agencies or enterprises. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.

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.