Contrasting Eagle Bancorp (EGBN) and TriCo Bancshares (TCBK)

Eagle Bancorp (NASDAQ: EGBN) and TriCo Bancshares (NASDAQ:TCBK) are both commercial banks companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Dividends

TriCo Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Eagle Bancorp does not pay a dividend. TriCo Bancshares pays out 31.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Eagle Bancorp and TriCo Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Eagle Bancorp $313.09 million 7.34 $97.70 million $3.18 21.15
TriCo Bancshares $218.27 million 4.32 $44.81 million $2.15 19.13

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

Volatility & Risk

Eagle Bancorp has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Eagle Bancorp and TriCo Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bancorp 0 2 3 0 2.60
TriCo Bancshares 0 1 1 0 2.50

Eagle Bancorp currently has a consensus price target of $66.00, indicating a potential downside of 1.86%. TriCo Bancshares has a consensus price target of $37.00, indicating a potential downside of 10.06%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Eagle Bancorp is more favorable than TriCo Bancshares.

Insider and Institutional Ownership

68.1% of Eagle Bancorp shares are held by institutional investors. Comparatively, 68.7% of TriCo Bancshares shares are held by institutional investors. 8.4% of Eagle Bancorp shares are held by insiders. Comparatively, 9.1% of TriCo Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Eagle Bancorp and TriCo Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Bancorp 32.40% 12.59% 1.55%
TriCo Bancshares 21.87% 10.27% 1.11%

Summary

Eagle Bancorp beats TriCo Bancshares on 12 of the 16 factors compared between the two stocks.

About Eagle Bancorp

Eagle Bancorp, Inc. is a bank holding company for EagleBank (the Bank). The Bank is the Company’s principal operating subsidiary. The Bank is a chartered commercial bank. As of December 31, 2016, the Bank operated 21 banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and nine in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers, as well as the community the Bank serves. It also offers online banking, mobile banking and remote deposit services.

About TriCo Bancshares

TriCo Bancshares is a bank holding company. The Company’s principal subsidiary is Tri Counties Bank, a California-chartered commercial bank (the Bank). The Bank offers banking services to retail customers and small to medium-sized businesses through 68 branch offices in Northern and Central California. As of December 31, 2016, the Bank was engaged in the general commercial banking business in 26 counties in Northern and Central California. The Bank operated from 58 traditional branches and 10 in-store branches, as of December 31, 2016. The Bank conducts a commercial banking business, including accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. It also offers installment note collection, issues cashier’s checks, sells travelers checks and provides safe deposit boxes and other customary banking services.

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