Reviewing Simmons First National (NASDAQ:SFNC) & Third Coast Bancshares (NASDAQ:TCBX)

Simmons First National (NASDAQ:SFNC) and Third Coast Bancshares (NASDAQ:TCBX) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Dividends

Simmons First National pays an annual dividend of $0.85 per share and has a dividend yield of 4.9%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 46.7%. Simmons First National pays out -29.0% 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. Simmons First National has raised its dividend for 14 consecutive years.

Valuation and Earnings

This table compares Simmons First National 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
Simmons First National	$794.53 million	3.19	$152.69 million	($2.93)	-5.97
Third Coast Bancshares	$197.80 million	2.53	$47.67 million	$3.56	10.14

Simmons First National has higher revenue and earnings than Third Coast Bancshares. Simmons First National 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Simmons First National and Third Coast Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	0	5	2	0	2.29
Third Coast Bancshares	0	2	2	1	2.80

Simmons First National currently has a consensus target price of $22.33, suggesting a potential upside of 27.62%. Third Coast Bancshares has a consensus target price of $42.67, suggesting a potential upside of 18.21%. Given Simmons First National’s higher probable upside, equities analysts clearly believe Simmons First National is more favorable than Third Coast Bancshares.

Institutional & Insider Ownership

27.6% of Simmons First National shares are held by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are held by institutional investors. 1.9% of Simmons First National shares are held by insiders. Comparatively, 10.3% of Third Coast Bancshares shares are held by 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 Simmons First National and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simmons First National	-29.70%	5.84%	0.78%
Third Coast Bancshares	16.30%	12.05%	1.17%

Volatility & Risk

Simmons First National has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Summary

Third Coast Bancshares beats Simmons First National on 10 of the 17 factors compared between the two stocks.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

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.