Texas Capital Bancshares, Inc. (TCBI) vs TFS Financial Corporation (TFSL)

Texas Capital Bancshares, Inc. and TFS Financial Corporation are both Banks Regional companies. Texas Capital Bancshares, Inc. and TFS Financial Corporation are of similar size ($4.6B and $4.5B). Texas Capital Bancshares, Inc. trades at the lower P/E: 13.1× against 45.8×. TFS Financial Corporation grew revenue faster over the last twelve months: 5.93% against 3.04%. Texas Capital Bancshares, Inc. has the higher net margin (16.9% vs 12.2%) and the higher return on invested capital (22.8% vs 1.12%). Both pay a dividend; TFS Financial Corporation yields more (7.07% vs 0.39%). Across the 19 metrics below, Texas Capital Bancshares, Inc. leads on 16 and TFS Financial Corporation on 3.

Valuation

Metric TCBI TFSL Banks Regional median
P/E 13.10 45.75 12.02
P/S 2.17 5.56 2.36
P/B 1.39 2.35 1.23
Price to free cash flow 7.01 53.23 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.63% 2.19% 8.21%
Free cash flow yield 14.27% 1.88% 9.23%

Profitability

Metric TCBI TFSL Banks Regional median
Gross margin 65.65% 41.62% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.90% 12.17% 18.82%
Free cash flow margin 25.34% 10.45% 17.97%
Return on equity 10.60% 5.23% 10.28%
Return on assets 1.07% 0.57% 1.13%
Return on invested capital 22.80% 1.12% 8.45%

Growth

Metric TCBI TFSL Banks Regional median
Revenue growth (TTM) 3.04% 5.93% 6.37%
EPS growth (last fiscal year) 430.47% 14.29% 18.85%
Revenue growth, 5-year CAGR 9.98% 9.26% 12.65%
Net income growth, 5-year CAGR 40.81% 1.83% 9.81%

Health

Metric TCBI TFSL Banks Regional median
Debt to equity 0.14 2.97 0.17
Current ratio 0.99 1.67 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric TCBI TFSL Banks Regional median
Dividend yield 0.39% 7.07% 2.49%
Payout ratio 0.05 3.24 0.29

Size

Metric TCBI TFSL Banks Regional median
Market cap 4.48b 4.61b 934.85m

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