Critical Analysis: Triumph Financial (NYSE:TFIN) and Bar Harbor Bankshares (NYSE:BHB)

Bar Harbor Bankshares (NYSE:BHB) and Triumph Financial (NYSE:TFIN) are both small-cap financial services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Bar Harbor Bankshares has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares Bar Harbor Bankshares and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bar Harbor Bankshares	N/A	N/A	N/A
Triumph Financial	2.00%	1.76%	0.24%

Earnings and Valuation

This table compares Bar Harbor Bankshares and Triumph Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bar Harbor Bankshares	$156.64 million	3.49	$38.72 million	$2.32	14.10
Triumph Financial	$487.93 million	3.04	$16.09 million	$0.29	215.28

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

Institutional and Insider Ownership

54.5% of Bar Harbor Bankshares shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 2.6% of Bar Harbor Bankshares shares are owned by company insiders. Comparatively, 5.6% of Triumph Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Bar Harbor Bankshares and Triumph Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bar Harbor Bankshares	0	2	1	0	2.33
Triumph Financial	1	0	0	0	1.00

Bar Harbor Bankshares currently has a consensus price target of $34.50, indicating a potential upside of 5.44%. Given Bar Harbor Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe Bar Harbor Bankshares is more favorable than Triumph Financial.

Summary

Triumph Financial beats Bar Harbor Bankshares on 8 of the 14 factors compared between the two stocks.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.

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.