Head to Head Survey: Third Coast Bancshares (NASDAQ:TCBX) and Shore Bancshares (NASDAQ:SHBI)

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

Institutional & Insider Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 59.8% of Shore Bancshares shares are held by institutional investors. 10.5% of Third Coast Bancshares shares are held by insiders. Comparatively, 8.7% of Shore Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 38.2%. Shore Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. Third Coast Bancshares pays out 420.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shore Bancshares pays out 28.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Third Coast Bancshares and Shore Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	2	4	0	2.67
Shore Bancshares	0	2	3	0	2.60

Third Coast Bancshares currently has a consensus price target of $47.75, suggesting a potential upside of 8.07%. Shore Bancshares has a consensus price target of $26.00, suggesting a potential upside of 11.92%. Given Shore Bancshares’ higher probable upside, analysts clearly believe Shore Bancshares is more favorable than Third Coast Bancshares.

Risk and Volatility

Third Coast Bancshares has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Shore Bancshares has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Third Coast Bancshares and Shore Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Third Coast Bancshares	$234.99 million	3.12	$47.67 million	$4.01	11.02
Shore Bancshares	$342.72 million	2.26	$59.51 million	$1.98	11.73

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
Shore Bancshares	19.15%	12.11%	1.16%

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.

About Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers trust, asset management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.