Head to Head Review: SR Bancorp (NASDAQ:SRBK) and Third Coast Bancshares (NASDAQ:TCBX)

SR Bancorp (NASDAQ:SRBK) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap 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.

Earnings and Valuation

This table compares SR Bancorp and Third Coast Bancshares’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$14.78 million	6.04	N/A	N/A	N/A
Third Coast Bancshares	$152.49 million	1.99	$33.40 million	$2.03	10.95

Third Coast Bancshares has higher revenue and earnings than SR Bancorp.

Analyst Ratings

This is a summary of current ratings and recommmendations for SR Bancorp and Third Coast Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	N/A
Third Coast Bancshares	0	0	3	0	3.00

Third Coast Bancshares has a consensus target price of $22.67, suggesting a potential upside of 2.01%. Given Third Coast Bancshares’ higher probable upside, analysts plainly believe Third Coast Bancshares is more favorable than SR Bancorp.

Insider & Institutional Ownership

24.7% of SR Bancorp shares are owned by institutional investors. Comparatively, 36.9% of Third Coast Bancshares shares are owned by institutional investors. 10.2% of Third Coast Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares SR Bancorp and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	N/A	-4.55%	-0.84%
Third Coast Bancshares	11.64%	8.46%	0.80%

Summary

Third Coast Bancshares beats SR Bancorp on 8 of the 9 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.