Cathay General Bancorp (CATY) vs Texas Capital Bancshares, Inc. (TCBI)

Cathay General Bancorp and Texas Capital Bancshares, Inc. are both Banks Regional companies. Cathay General Bancorp and Texas Capital Bancshares, Inc. are of similar size ($4.1B and $4.1B). Cathay General Bancorp trades at the lower P/E: 11.9× against 12.3×. Texas Capital Bancshares, Inc. grew revenue faster over the last twelve months: 13.5% against 2.47%. Cathay General Bancorp has the higher net margin (24.7% vs 17.1%) and the lower return on invested capital (14.8% vs 66.5%). Across the 19 metrics below, Texas Capital Bancshares, Inc. leads on 10 and Cathay General Bancorp on 9.

Valuation

Metric CATY TCBI Banks Regional median
P/E 11.93 12.32 12.15
P/S 2.92 2.05 2.37
P/B 1.35 1.25 1.21
Price to free cash flow 7.71 7.11 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.07 0.48 2.27
Earnings yield 8.38% 8.12% 8.11%
Free cash flow yield 12.97% 14.07% 8.98%

Profitability

Metric CATY TCBI Banks Regional median
Gross margin 61.82% 65.16% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.66% 17.05% 18.66%
Free cash flow margin 37.94% 23.16% 21.18%
Return on equity 11.71% 10.59% 10.64%
Return on assets 1.44% 1.05% 1.13%
Return on invested capital 14.82% 66.51% 8.33%

Growth

Metric CATY TCBI Banks Regional median
Revenue growth (TTM) 2.47% 13.49% 6.61%
EPS growth (last fiscal year) 14.94% 430.47% —
Revenue growth, 5-year CAGR 13.25% 9.98% 12.30%
Net income growth, 5-year CAGR 6.61% 40.81% 9.71%

Health

Metric CATY TCBI Banks Regional median
Debt to equity 0.04 0.14 0.22
Current ratio 1.04 1.00 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CATY TCBI Banks Regional median
Dividend yield 3.52% — 3.75%
Payout ratio 0.26 0.00 0.27

Size

Metric CATY TCBI Banks Regional median
Market cap 4.08b 4.11b 921.07m

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