Contrast between First Financial (NASDAQ:THFF) and Texas Capital Bancshares (NASDAQ:TCBI)

Texas Capital Bancshares (NASDAQ:TCBI – Get Rating) and First Financial (NASDAQ:THFF – Get Rating) are both finance companies, but which business is superior? We’ll compare the two companies based on their risk strength, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk and Volatility

Texas Capital Bancshares has a beta of 1.54, suggesting its stock price is 54% more volatile than the S&P 500. In comparison, First Financial has a beta of 0.63, suggesting its stock price is 37 % less volatile than the S&P 500.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Texas Capital Bancshares and First Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Texas Capital Bancshares $1.01 billion 2.72 $253.94 million $3.95 13.77
First Financial $194.28 million 2.84 $52.99 million $4.73 9.38

Texas Capital Bancshares has higher revenue and profit than First Financial. First Financial trades at a lower price-to-earnings ratio than Texas Capital Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a summary of the current ratings of Texas Capital Bancshares and First Financial, as provided by

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Texas Capital Bancshares 0 4 3 1 2.63
First Financial 0 1 0 0 2.00

Texas Capital Bancshares currently has a consensus price target of $69.47, suggesting a potential upside of 27.72%. First Financial has a consensus price target of $50.00, suggesting a potential upside of 12.71%. Given Texas Capital Bancshares’ higher consensus rating and possible higher upside, equity research analysts clearly believe that Texas Capital Bancshares is more favorable than First Financial.


This table compares the net margins, return on equity and return on assets of Texas Capital Bancshares and First Financial.

Net margins Return on equity return on assets
Texas Capital Bancshares 22.71% 7.80% 0.65%
First Financial 30.36% 11.57% 1.34%

Institutional and Insider Ownership

97.8% of the shares of Texas Capital Bancshares are held by institutional investors. By comparison, 67.2% of First Financial’s shares are held by institutional investors. 0.6% of the shares of Texas Capital Bancshares are held by insiders of the company. By comparison, 3.4% of First Financial’s shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.


Texas Capital Bancshares beats First Financial on 9 out of 15 factors compared between the two stocks.

Texas Capital Bancshares Company Profile (Get an evaluation)

Texas Capital Bancshares, Inc. operates as a bank holding company for Texas Capital Bank, is a full-service financial services company that provides customized solutions to businesses, entrepreneurs and individuals. The Company offers commercial banking, retail banking, investment banking and wealth management. It offers business deposit products and services, including business checking accounts, lockbox accounts and cash concentration accounts, as well as information services, wire transfer initiation, ACH initiation, account transfer and service integration; and consumer deposit products, such as checking accounts, savings accounts, money market accounts and certificates of deposit. The Company also provides commercial loans for general corporate purposes including working capital financing, internal growth, acquisitions and business insurance premiums, as well as consumer loans; loans to exploration and production companies; Mortgages; commercial real estate loans and loans for the financing of residential builders; first and second lien loans to purchase or build residential housing for 1 to 4 families, as well as revolving home equity lines of credit and loans to purchase lots for future construction of residential housing for 1 to 4 families; and real estate loans from a small business administration program, as well as equipment financing and leasing services and letters of credit. Additionally, it offers online and mobile banking, as well as debit and credit card services; escrow services; personal wealth management and fiduciary services; and American Airlines Miles AAdvantage depositors. It operates in the Austin, Fort Worth, Dallas, Houston and San Antonio Texas metropolitan areas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

Profile of the first financial company (Get an evaluation)

First Financial Corporation, through its subsidiaries, provides various financial services. It offers non-interest-bearing demand, interest-bearing demand, savings, term and other term deposits. The company also provides commercial loans primarily to expand a business or finance asset purchases; residential real estate and residential real estate construction loans; and home equity loans and spreads, secured loans, and secured and unsecured cash/CD loans. In addition, it offers lease financing, trust account, depositor and insurance services. The company operates 78 branches in west-central Indiana, east-central Illinois, western Kentucky, and central and western Tennessee. First Financial Corporation was founded in 1834 and is headquartered in Terre Haute, Indiana.

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