Analyzing Texas Capital Bancshares (NASDAQ:TCBI) & Bank of South Carolina (NASDAQ:BKSC)

Bank of South Carolina (NASDAQ:BKSC) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Insider & Institutional Ownership

0.2% of Bank of South Carolina shares are owned by institutional investors. Comparatively, 96.9% of Texas Capital Bancshares shares are owned by institutional investors. 29.8% of Bank of South Carolina shares are owned by insiders. Comparatively, 1.5% of Texas Capital Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Bank of South Carolina and Texas Capital Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of South Carolina	0	0	0	0	N/A
Texas Capital Bancshares	3	8	2	0	1.92

Texas Capital Bancshares has a consensus target price of $63.58, suggesting a potential upside of 5.12%. Given Texas Capital Bancshares’ higher possible upside, analysts plainly believe Texas Capital Bancshares is more favorable than Bank of South Carolina.

Valuation & Earnings

This table compares Bank of South Carolina and Texas Capital Bancshares’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of South Carolina	$21.16 million	2.88	$5.49 million	$0.95	11.77
Texas Capital Bancshares	$1.79 billion	1.58	$189.14 million	$3.30	18.33

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

Risk and Volatility

Bank of South Carolina has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Bank of South Carolina and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of South Carolina	19.55%	11.85%	0.84%
Texas Capital Bancshares	9.66%	7.05%	0.69%

Summary

Texas Capital Bancshares beats Bank of South Carolina on 8 of the 13 factors compared between the two stocks.

About Bank of South Carolina

Bank of South Carolina Corporation operates as a bank holding company for The Bank of South Carolina that provides a range of financial products and services primarily in Charleston, Berkeley, and Dorchester counties of South Carolina. Its deposits include non-interest-bearing demand accounts, NOW accounts, money market accounts, time deposits, and savings accounts, as well as certificates of deposit. The company offers secured and unsecured commercial loans, commercial real estate construction loans, consumer construction loans, home equity lines of credit, and mortgage originations, as well as paycheck protection program loans. It operates five banking house locations. The company was founded in 1986 and is headquartered in Charleston, South Carolina.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services. It also provides deposit accounts, analyzed accounts, commercial card, SBA and business loans, packaged solutions, and merchant services; liquidity and investments, working capital, international trade and payment, and treasury and credit products; and commercial real estate, homebuilder and community, and mortgage finance. In addition, the company offers payables and receivables management; online and mobile banking; term loans and lines of credit, equipment finance and lease, acquisition finance, and asset-based lending; private wealth advisory solutions; and checking and savings accounts, debit and credit cards, and certificates of deposit, as well as ETF and funds management services. Further, it provides financial institution money market accounts and loan syndication products; commercial loans for financing for working capital, organic growth, and acquisitions; real estate term and construction loans; mortgage warehouse lending services; treasury management, trust, and advisory and escrow services; and letters of credit. The company operates in Austin, Dallas, Fort Worth, Houston, and San Antonio metropolitan areas of Texas. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.