Texas Capital Bancshares (NASDAQ:TCBI – Get Free Report) and International Bancshares (NASDAQ:IBOC – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Earnings and Valuation
This table compares Texas Capital Bancshares and International Bancshares”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Texas Capital Bancshares | $2.00 billion | 2.11 | $330.24 million | $7.44 | 13.01 |
| International Bancshares | $1.06 billion | 4.22 | $412.29 million | $6.70 | 10.70 |
Analyst Ratings
This is a breakdown of current recommendations for Texas Capital Bancshares and International Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Texas Capital Bancshares | 3 | 7 | 4 | 0 | 2.07 |
| International Bancshares | 0 | 0 | 0 | 1 | 4.00 |
Texas Capital Bancshares presently has a consensus target price of $102.08, indicating a potential upside of 5.45%. International Bancshares has a consensus target price of $85.00, indicating a potential upside of 18.53%. Given International Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe International Bancshares is more favorable than Texas Capital Bancshares.
Volatility and Risk
Texas Capital Bancshares has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, International Bancshares has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Profitability
This table compares Texas Capital Bancshares and International Bancshares’ 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% |
| International Bancshares | 39.33% | 13.16% | 2.52% |
Insider & Institutional Ownership
96.9% of Texas Capital Bancshares shares are owned by institutional investors. Comparatively, 65.9% of International Bancshares shares are owned by institutional investors. 1.9% of Texas Capital Bancshares shares are owned by insiders. Comparatively, 13.4% of International Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
International Bancshares beats Texas Capital Bancshares on 10 of the 15 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 International Bancshares
International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.
Receive News & Ratings for Texas Capital Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Texas Capital Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.
