Independent Bank Group (NASDAQ:IBTX) and Texas Capital Bancshares (NASDAQ:TCBI) analysis


Texas Capital Bancshares (NASDAQ: TCBIGet a rating) and Independent Banking Group (NASDAQ:IBTXGet a rating) are both mid-cap financials, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Institutional and Insider Ownership

94.3% of the shares of Texas Capital Bancshares are held by institutional investors. In comparison, 72.0% of the shares of the Independent Bank Group 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 Independent Bank Group shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Analyst Notes

This is a summary of the current recommendations for Texas Capital Bancshares and Independent Bank Group, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Texas Capital Bancshares 0 5 4 0 2.44
Independent banking group 0 1 1 0 2.50

Texas Capital Bancshares currently has a consensus target price of $72.11, suggesting a potential upside of 28.55%. Independent Bank Group has a consensus target price of $85.00, suggesting a potential upside of 21.15%. Given the likely higher upside of Texas Capital Bancshares, analysts clearly believe that Texas Capital Bancshares is more favorable than Independent Bank Group.

Volatility and risk

Texas Capital Bancshares has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. In comparison, Independent Bank Group has a beta of 1.7, suggesting that its stock price is its stock is 70% more volatile than the S&P 500.

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS), and valuation of Texas Capital Bancshares and Independent Bank Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Texas Capital Bancshares $1.01 billion 2.80 $253.94 million $4.59 12.22
Independent banking group $650.08 million 4.63 $224.75 million $5.21 1:47 p.m.

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

Profitability

This table compares the net margins, return on equity and return on assets of Texas Capital Bancshares and Independent Bank Group.

Net margins Return on equity return on assets
Texas Capital Bancshares 25.02% 9.00% 0.69%
Independent banking group 34.57% 8.88% 1.22%

Summary

Independent Bank Group beats Texas Capital Bancshares on 8 out of 14 factors compared between the two stocks.

Texas Capital Bancshares Company Profile (Get a rating)

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.

Independent Banking Group Company Profile (Get a rating)

Independent Bank Group, Inc. operates as a bank holding company for Independent Bank which provides various commercial banking products and services to businesses, professionals and individuals in the United States. It accepts various deposit products, including checking and savings accounts, demand deposits, money market accounts, and certificates of deposit. The company also offers commercial real estate loans; loans for commercial construction, land and land development; residential real estate loans; single-family interim construction loans; commercial loans including SBA-guaranteed loans, commercial term loans, equipment lease financing, lines of credit and energy-related loans; agricultural loans for farmers and herders; consumer installment loans including loans to purchase cars, boats and other recreational vehicles; and residential mortgages, as well as mortgages for the purchase of warehouses. Additionally, it offers debit cards, online and mobile banking, e-statements, mail banking, and direct deposit services; and accounting and business management services, including business audit analysis, business savings and cash management services. As of December 31, 2021, the company operated 93 full-service branches. Independent Bank Group, Inc. was founded in 2002 and is headquartered in McKinney, Texas.



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