Republic Bancorp, Inc. KY Class A (NASDAQ: TCBI) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares Republic Bancorp, Inc. KY Class A and Texas Capital Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Republic Bancorp, Inc. KY Class A 19.24% 9.45% 1.19%
Texas Capital Bancshares 22.15% 12.51% 1.03%

Volatility & Risk

Republic Bancorp, Inc. KY Class A has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Dividends

Republic Bancorp, Inc. KY Class A pays an annual dividend of $0.97 per share and has a dividend yield of 1.9%. Texas Capital Bancshares does not pay a dividend. Republic Bancorp, Inc. KY Class A has raised its dividend for 16 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Republic Bancorp, Inc. KY Class A and Texas Capital Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Republic Bancorp, Inc. KY Class A 0 1 0 0 2.00
Texas Capital Bancshares 1 7 6 0 2.36

Republic Bancorp, Inc. KY Class A currently has a consensus price target of $51.00, indicating a potential upside of 2.39%. Texas Capital Bancshares has a consensus price target of $107.00, indicating a potential upside of 15.30%. Given Texas Capital Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Texas Capital Bancshares is more favorable than Republic Bancorp, Inc. KY Class A.

Earnings and Valuation

This table compares Republic Bancorp, Inc. KY Class A and Texas Capital Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Republic Bancorp, Inc. KY Class A $277.19 million 3.75 $45.63 million N/A N/A
Texas Capital Bancshares $953.55 million 4.88 $197.06 million $4.08 22.75

Texas Capital Bancshares has higher revenue and earnings than Republic Bancorp, Inc. KY Class A.

Insider & Institutional Ownership

24.9% of Republic Bancorp, Inc. KY Class A shares are owned by institutional investors. 52.3% of Republic Bancorp, Inc. KY Class A shares are owned by company insiders. Comparatively, 0.5% of Texas Capital Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Texas Capital Bancshares beats Republic Bancorp, Inc. KY Class A on 10 of the 15 factors compared between the two stocks.

About Republic Bancorp, Inc. KY Class A

Republic Bancorp, Inc., a financial holding company, provides banking products and services in the United States. It operates in five segments: Traditional Banking, Warehouse Lending, Mortgage Banking, Tax Refund Solutions, and Republic Credit Solutions. The company accepts demand, savings, time, and brokered and other certificates of deposits; and money market and individual retirement accounts. Its loan products include single family, first lien residential real estate, and adjustable rate mortgage loans; commercial and industrial, commercial real estate, construction and development, and multi-family loans, as well as equipment financing; construction and land development loans; Internet and correspondent lending; home improvement and home equity, and secured and unsecured personal loans; and dealer floor plan, consumer indirect automobile, and consumer aircraft loans. The company also offers credit cards; title insurance and other financial products and services; and memory banking, private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and Internet and mobile banking services. In addition, it provides short-term and revolving credit facilities to mortgage bankers; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; and general purpose reloadable prepaid cards through third party program managers. Further, the company offers consumer credit products; and property and casualty insurance services. As of March 5, 2018, it operated 45 banking centers, including 33 banking centers in 12 Kentucky communities, 3 in southern Indiana, 6 in Florida, 2 in Tennessee, and 1 in Ohio, as well as 1 loan production office in Tennessee. Republic Bancorp, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as other treasury management services, including information services, wire transfer initiation, ACH initiation, account transfer, and service integration; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial loans for general corporate purposes comprising financing for working capital, internal growth, and acquisitions, as well as financing for business insurance premiums; real estate term and construction loans; mortgage warehouse lending; mortgage correspondent aggregation; equipment finance and leasing; medium- and long-term tax-exempt loans; treasury management services, including online banking and debit and credit card services; and letters of credit. In addition, it offers personal wealth management and trust services; certificates of deposit and IRAs; interest-bearing and non-interest-bearing checking accounts; traditional money market and savings accounts; secured and unsecured loans; and online and mobile banking facilities. It primarily serves clients in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. The company operates full-service locations in Austin, Dallas, Fort Worth, Houston, and San Antonio. Texas Capital Bancshares, Inc. was founded in 1996 and is headquartered in Dallas, Texas.

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