Contrasting Banc of California (NYSE:BANC) and Triumph Financial (NYSE:TFIN)

Banc of California (NYSE:BANC) and Triumph Financial (NYSE:TFIN) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk & Volatility

Banc of California has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Banc of California and Triumph Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banc of California	0	3	6	2	2.91
Triumph Financial	0	6	1	0	2.14

Banc of California currently has a consensus target price of $21.00, suggesting a potential upside of 16.91%. Triumph Financial has a consensus target price of $84.80, suggesting a potential upside of 38.35%. Given Triumph Financial’s higher probable upside, analysts plainly believe Triumph Financial is more favorable than Banc of California.

Earnings & Valuation

This table compares Banc of California and Triumph Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banc of California	$863.35 million	3.30	$228.97 million	($0.42)	-42.77
Triumph Financial	$518.88 million	2.82	$25.36 million	$1.48	41.41

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

Profitability

This table compares Banc of California and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banc of California	-1.44%	7.98%	0.69%
Triumph Financial	7.17%	4.69%	0.62%

Insider & Institutional Ownership

86.9% of Banc of California shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 2.8% of Banc of California shares are held by company insiders. Comparatively, 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Banc of California beats Triumph Financial on 8 of the 15 factors compared between the two stocks.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.