Triumph Bancorp (NASDAQ:TBK) and Franklin Financial Network (NYSE:FSB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

85.3% of Triumph Bancorp shares are owned by institutional investors. Comparatively, 67.0% of Franklin Financial Network shares are owned by institutional investors. 9.4% of Triumph Bancorp shares are owned by insiders. Comparatively, 10.6% of Franklin Financial Network shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Triumph Bancorp and Franklin Financial Network’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Triumph Bancorp $217.88 million 4.47 $36.22 million $1.57 23.58
Franklin Financial Network $147.17 million 3.28 $28.08 million $2.42 13.73

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Triumph Bancorp and Franklin Financial Network, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triumph Bancorp 0 1 6 0 2.86
Franklin Financial Network 0 6 1 0 2.14

Triumph Bancorp presently has a consensus price target of $45.57, indicating a potential upside of 23.10%. Franklin Financial Network has a consensus price target of $37.50, indicating a potential upside of 12.88%. Given Triumph Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Triumph Bancorp is more favorable than Franklin Financial Network.

Risk & Volatility

Triumph Bancorp has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Franklin Financial Network has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Profitability

This table compares Triumph Bancorp and Franklin Financial Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triumph Bancorp 15.39% 10.07% 1.31%
Franklin Financial Network 19.13% 11.85% 0.96%

Summary

Triumph Bancorp beats Franklin Financial Network on 9 of the 14 factors compared between the two stocks.

About Triumph Bancorp

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through Banking, Factoring, and Corporate segments. 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, equipment, and premium finance loans; real estate loans to finance commercial properties; factoring services to 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, 2017, the company operated 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 7 branches in central and northwestern Illinois; 1 branch in northeastern Illinois; 32 branches in central and eastern Colorado; 2 branches in far western Kansas; and loan production offices in Portland, Oregon, Kansas City, Missouri, and Colorado Springs, Colorado, as well as 1 additional branch office in Dallas, Texas. Triumph Bancorp, Inc. is headquartered in Dallas, Texas.

About Franklin Financial Network

Franklin Financial Network, Inc. operates as the holding company for Franklin Synergy Bank that provides various banking and related financial services to small businesses, corporate entities, local governments, and individuals. The company's deposit products include demand, interest-bearing transaction accounts, money market accounts, certificates of deposit, municipal deposits, savings, and deposit accounts. The company also provides consumer lending solutions, including first mortgage real estate loans, home equity loans, and other personal loans; small business administration, and commercial and industrial loans; and single-family residential mortgage loans and construction loans for residential and commercial purposes. In addition, it offers wealth management/trust services; and retirement planning, financial planning, investment services, and insurance products. The company operates through 13 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area. Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee.

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