Texas Capital Bancshares (NASDAQ:TCBI) vs. BOK Financial (NASDAQ:BOKF) Critical Comparison

Texas Capital Bancshares (NASDAQ:TCBI) and BOK Financial (NASDAQ:BOKF) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Valuation & Earnings

This table compares Texas Capital Bancshares and BOK Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Capital Bancshares	$2.00 billion	2.21	$330.24 million	$7.44	13.63
BOK Financial	$2.14 billion	3.79	$577.99 million	$9.88	13.51

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

Profitability

This table compares Texas Capital Bancshares and BOK Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Capital Bancshares	17.71%	10.76%	1.10%
BOK Financial	18.05%	9.90%	1.15%

Analyst Ratings

This is a breakdown of recent ratings for Texas Capital Bancshares and BOK Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Capital Bancshares	3	7	4	0	2.07
BOK Financial	0	8	3	0	2.27

Texas Capital Bancshares currently has a consensus price target of $102.08, suggesting a potential upside of 0.69%. BOK Financial has a consensus price target of $134.91, suggesting a potential upside of 1.05%. Given BOK Financial’s stronger consensus rating and higher possible upside, analysts plainly believe BOK Financial is more favorable than Texas Capital Bancshares.

Institutional and Insider Ownership

96.9% of Texas Capital Bancshares shares are held by institutional investors. Comparatively, 34.4% of BOK Financial shares are held by institutional investors. 1.9% of Texas Capital Bancshares shares are held by insiders. Comparatively, 63.5% of BOK Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Texas Capital Bancshares has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, BOK Financial has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Summary

BOK Financial beats Texas Capital Bancshares on 10 of the 14 factors compared between the two stocks.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

About BOK Financial

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, manufacturing, wholesale/retail, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and automated teller machine, call center, and Internet and mobile banking services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.