First Business Financial Services, Inc. (FBIZ) vs Third Coast Bancshares, Inc. (TCBX)

First Business Financial Services, Inc. and Third Coast Bancshares, Inc. are both Banks Regional companies. First Business Financial Services, Inc. and Third Coast Bancshares, Inc. are of similar size ($653.2M and $623.6M). Third Coast Bancshares, Inc. trades at the lower P/E: 8.5× against 11.0×. Third Coast Bancshares, Inc. grew revenue faster over the last twelve months: 18.0% against 4.43%. First Business Financial Services, Inc. has the higher net margin (19.3% vs 16.6%) and the lower return on invested capital (8.54% vs 18.6%). Across the 18 metrics below, Third Coast Bancshares, Inc. leads on 10 and First Business Financial Services, Inc. on 8.

Valuation

Metric FBIZ TCBX Banks Regional median
P/E 11.03 8.48 12.02
P/S 2.14 1.54 2.36
P/B 1.58 0.97 1.23
Price to free cash flow 9.12 215.38 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.07% 11.80% 8.21%
Free cash flow yield 10.97% 0.46% 9.23%

Profitability

Metric FBIZ TCBX Banks Regional median
Gross margin 62.45% 58.42% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.30% 16.61% 18.82%
Free cash flow margin 23.46% 0.72% 17.97%
Return on equity 15.12% 11.86% 10.28%
Return on assets 1.32% 1.19% 1.13%
Return on invested capital 8.54% 18.57% 8.45%

Growth

Metric FBIZ TCBX Banks Regional median
Revenue growth (TTM) 4.43% 18.01% 6.37%
EPS growth (last fiscal year) 14.23% 36.33% 18.85%
Revenue growth, 5-year CAGR 18.18% 34.06% 12.65%
Net income growth, 5-year CAGR 23.98% 38.41% 9.81%

Health

Metric FBIZ TCBX Banks Regional median
Debt to equity 0.46 0.00 0.17
Current ratio 1.02 0.96 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FBIZ TCBX Banks Regional median
Dividend yield 1.74% — 2.49%
Payout ratio 0.19 — 0.29

Size

Metric FBIZ TCBX Banks Regional median
Market cap 623.57m 653.21m 934.85m

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