Head to Head Comparison: Societe Generale Group (OTCMKTS:SCGLY) vs. Texas Community Bancshares (NASDAQ:TCBS)

Texas Community Bancshares (NASDAQ:TCBS) and Societe Generale Group (OTCMKTS:SCGLY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

15.8% of Texas Community Bancshares shares are held by institutional investors. Comparatively, 1.0% of Societe Generale Group shares are held by institutional investors. 15.3% of Texas Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Texas Community Bancshares and Societe Generale Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Community Bancshares	0	1	0	0	2.00
Societe Generale Group	0	5	3	1	2.56

Risk and Volatility

Texas Community Bancshares has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500. Comparatively, Societe Generale Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Texas Community Bancshares and Societe Generale Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Community Bancshares	12.68%	6.14%	0.76%
Societe Generale Group	23.30%	7.20%	0.36%

Earnings and Valuation

This table compares Texas Community Bancshares and Societe Generale Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Community Bancshares	$17.39 million	2.86	$2.84 million	$1.21	14.29
Societe Generale Group	$30.83 billion	1.65	$6.79 billion	$2.06	6.66

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

Dividends

Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Societe Generale Group pays an annual dividend of $0.22 per share and has a dividend yield of 1.6%. Texas Community Bancshares pays out 19.8% of its earnings in the form of a dividend. Societe Generale Group pays out 10.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Community Bancshares has raised its dividend for 1 consecutive years. Societe Generale Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Societe Generale Group beats Texas Community Bancshares on 11 of the 17 factors compared between the two stocks.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.

About Societe Generale Group

Société Générale Société anonyme provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally. It operates through French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, online banking, wealth management, and equipment and vendor finance services; and insurance products, including home, vehicle, family, health, and mortgage insurance. The company also provides corporate and investment banking, securities, business consulting, consumer finance, advisory and financing, and asset management and private banking services. In addition, it offers brokerage, cash management, payment, factoring/reverse factoring, export financing, trade finance, cash clearing and correspondent banking, and receivables and supply chain financing services. Société Générale Société anonyme was incorporated in 1864 and is headquartered in Paris, France.