Head-To-Head Review: Texas Community Bancshares (NASDAQ:TCBS) versus Erste Group Bank (OTCMKTS:EBKDY)

Texas Community Bancshares (NASDAQ:TCBS) and Erste Group Bank (OTCMKTS:EBKDY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of current ratings and recommmendations for Texas Community Bancshares and Erste Group Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Community Bancshares	0	1	0	0	2.00
Erste Group Bank	0	1	5	1	3.00

Profitability

This table compares Texas Community Bancshares and Erste Group Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Community Bancshares	12.68%	6.14%	0.76%
Erste Group Bank	18.39%	10.22%	0.94%

Dividends

Texas Community Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Erste Group Bank pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. Texas Community Bancshares pays out 19.8% of its earnings in the form of a dividend. Erste Group Bank pays out 5.2% 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. Texas Community Bancshares has raised its dividend for 1 consecutive years. Texas Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Texas Community Bancshares has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Erste Group Bank has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

15.8% of Texas Community Bancshares shares are owned by institutional investors. Comparatively, 0.4% of Erste Group Bank shares are owned by institutional investors. 15.3% of Texas Community Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Texas Community Bancshares and Erste Group Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Community Bancshares	$25.57 million	1.93	$2.84 million	$1.21	14.18
Erste Group Bank	$23.77 billion	2.04	$3.97 billion	$5.22	11.96

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

Summary

Erste Group Bank beats Texas Community Bancshares on 12 of the 17 factors compared between the two stocks.

About Texas Community Bancshares

Texas Community Bancshares, Inc. operates as the bank holding company for Mineola Community Bank, S.S.B. that provides loans and banking services to consumers and commercial customers in Mineola, Texas and the surrounding area, and the Dallas Fort Worth Metroplex. It generates a selection of deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts. The company also originates primarily one- to four-family residential mortgage loans, commercial real estate loans, and construction and land loans; and car, boat, share, unsecured loans, etc., as well as agricultural loans, commercial loans, and consumer and other loans. In addition, it invests in securities; and offers sweep account, safe deposit boxes, e-statement, cards, online banking, and mobile banking services. Texas Community Bancshares, Inc. was founded in 1934 and is headquartered in Mineola, Texas.

About Erste Group Bank

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, and public sector customers. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, cash logistics, and payment factory and cash pooling services; documentary collection, equity interests and investments, revolving export credits lines, letters of credit, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, debt capital markets, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. It operates in Austria, the Czech Republic, Slovakia, Romania, Hungary, Serbia, Croatia, and internationally. The company was founded in 1819 and is headquartered in Vienna, Austria.