Thomasville Bancshares (OTCMKTS:THVB) vs. Third Coast Bancshares (NASDAQ:TCBX) Critical Survey

Thomasville Bancshares (OTCMKTS:THVB) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Thomasville Bancshares and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
Third Coast Bancshares	16.30%	12.05%	1.17%

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 2.9%. Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 41.6%. Thomasville Bancshares pays out 42.3% of its earnings in the form of a dividend. Third Coast Bancshares pays out 445.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Thomasville Bancshares and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
Third Coast Bancshares	0	2	2	1	2.80

Third Coast Bancshares has a consensus target price of $45.50, suggesting a potential upside of 12.09%. Given Third Coast Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than Thomasville Bancshares.

Earnings & Valuation

This table compares Thomasville Bancshares and Third Coast Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.55	$39.27 million	$6.85	14.42
Third Coast Bancshares	$207.74 million	2.71	$47.67 million	$3.79	10.71

Third Coast Bancshares has higher revenue and earnings than Thomasville Bancshares. Third Coast Bancshares is trading at a lower price-to-earnings ratio than Thomasville Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Thomasville Bancshares has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Insider and Institutional Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. 10.3% of Third Coast Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Third Coast Bancshares beats Thomasville Bancshares on 13 of the 17 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.