Reviewing TriCo Bancshares (NASDAQ:TCBK) & Columbia Banking System (NASDAQ:COLB)

TriCo Bancshares (NASDAQ:TCBK) and Columbia Banking System (NASDAQ:COLB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares TriCo Bancshares and Columbia Banking System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriCo Bancshares	23.71%	9.92%	1.31%
Columbia Banking System	19.28%	11.41%	1.30%

Earnings and Valuation

This table compares TriCo Bancshares and Columbia Banking System”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriCo Bancshares	$538.91 million	2.98	$121.56 million	$3.95	12.73
Columbia Banking System	$3.21 billion	2.67	$550.00 million	$2.51	11.79

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

Dividends

TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Columbia Banking System pays an annual dividend of $1.48 per share and has a dividend yield of 5.0%. TriCo Bancshares pays out 36.5% of its earnings in the form of a dividend. Columbia Banking System pays out 59.0% 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. TriCo Bancshares has increased its dividend for 12 consecutive years and Columbia Banking System has increased its dividend for 4 consecutive years.

Risk & Volatility

TriCo Bancshares has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

59.1% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 92.5% of Columbia Banking System shares are owned by institutional investors. 4.8% of TriCo Bancshares shares are owned by insiders. Comparatively, 0.6% of Columbia Banking System shares are owned by 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TriCo Bancshares and Columbia Banking System, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriCo Bancshares	0	2	4	1	2.86
Columbia Banking System	0	10	4	1	2.40

TriCo Bancshares presently has a consensus price target of $54.60, suggesting a potential upside of 8.61%. Columbia Banking System has a consensus price target of $31.73, suggesting a potential upside of 7.20%. Given TriCo Bancshares’ stronger consensus rating and higher possible upside, research analysts plainly believe TriCo Bancshares is more favorable than Columbia Banking System.

Summary

TriCo Bancshares beats Columbia Banking System on 10 of the 16 factors compared between the two stocks.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.

About Columbia Banking System

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.