Financial Contrast: Triumph Financial (NYSE:TFIN) and Live Oak Bancshares (NYSE:LOB)

Live Oak Bancshares (NYSE:LOB) and Triumph Financial (NYSE:TFIN) are both small-cap financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

64.0% of Live Oak Bancshares shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 23.4% of Live Oak Bancshares shares are owned by insiders. Comparatively, 5.6% of Triumph Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Live Oak Bancshares has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Live Oak Bancshares and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Live Oak Bancshares	6.94%	6.61%	0.51%
Triumph Financial	2.00%	1.76%	0.24%

Analyst Recommendations

This is a breakdown of recent recommendations for Live Oak Bancshares and Triumph Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Live Oak Bancshares	0	2	0	1	2.67
Triumph Financial	1	0	0	0	1.00

Valuation and Earnings

This table compares Live Oak Bancshares and Triumph Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Live Oak Bancshares	$936.15 million	1.70	$77.47 million	$1.49	23.25
Triumph Financial	$487.93 million	3.09	$16.09 million	$0.29	218.93

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

Summary

Live Oak Bancshares beats Triumph Financial on 10 of the 13 factors compared between the two stocks.

About Live Oak Bancshares

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.

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.