Analyzing Triumph Financial (NYSE:TFIN) & LCNB (NASDAQ:LCNB)

LCNB (NASDAQ:LCNB) and Triumph Financial (NYSE:TFIN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Institutional and Insider Ownership

34.7% of LCNB shares are held by institutional investors. Comparatively, 91.1% of Triumph Financial shares are held by institutional investors. 5.7% of LCNB shares are held by company insiders. Comparatively, 5.5% of Triumph Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

LCNB has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for LCNB and Triumph Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCNB	0	2	1	0	2.33
Triumph Financial	0	5	2	0	2.29

LCNB currently has a consensus price target of $20.00, indicating a potential upside of 1.68%. Triumph Financial has a consensus price target of $78.80, indicating a potential upside of 24.96%. Given Triumph Financial’s higher probable upside, analysts clearly believe Triumph Financial is more favorable than LCNB.

Earnings and Valuation

This table compares LCNB and Triumph Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCNB	$124.52 million	2.25	$23.12 million	$1.75	11.24
Triumph Financial	$518.88 million	2.91	$25.36 million	$1.96	32.17

Triumph Financial has higher revenue and earnings than LCNB. LCNB is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LCNB and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LCNB	20.02%	9.00%	1.11%
Triumph Financial	8.96%	5.57%	0.72%

Summary

Triumph Financial beats LCNB on 9 of the 14 factors compared between the two stocks.

About LCNB

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as individual retirement accounts and time certificates. The company's loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. It offers consumer loans, such as automobile, recreational vehicles, boat, home improvement, and personal loans. In addition, the company provides trust administration, estate settlement, and fiduciary services; and investment management services for trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.