Contrasting TriCo Bancshares (TCBK) and The Competition

TriCo Bancshares (NASDAQ: TCBK) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its peers? We will compare TriCo Bancshares to similar businesses based on the strength of its valuation, analyst recommendations, risk, dividends, earnings, profitability and institutional ownership.

Insider & Institutional Ownership

69.6% of TriCo Bancshares shares are held by institutional investors. Comparatively, 46.1% of shares of all “Commercial Banks” companies are held by institutional investors. 9.1% of TriCo Bancshares shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

TriCo Bancshares has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, TriCo Bancshares’ peers have a beta of 0.74, indicating that their average stock price is 26% less volatile than the S&P 500.

Dividends

TriCo Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.6%. TriCo Bancshares pays out 31.5% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.4% of their earnings in the form of a dividend.

Profitability

This table compares TriCo Bancshares and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriCo Bancshares 21.87% 10.17% 1.10%
TriCo Bancshares Competitors 20.47% 8.64% 0.92%

Analyst Ratings

This is a breakdown of current ratings for TriCo Bancshares and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriCo Bancshares 0 1 1 0 2.50
TriCo Bancshares Competitors 363 2863 2316 68 2.37

TriCo Bancshares currently has a consensus target price of $37.00, suggesting a potential downside of 11.06%. As a group, “Commercial Banks” companies have a potential upside of 5.88%. Given TriCo Bancshares’ peers higher possible upside, analysts plainly believe TriCo Bancshares has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares TriCo Bancshares and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
TriCo Bancshares $218.27 million $44.81 million 19.26
TriCo Bancshares Competitors $341.79 million $72.49 million 20.99

TriCo Bancshares’ peers have higher revenue and earnings than TriCo Bancshares. TriCo Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

TriCo Bancshares beats its peers on 8 of the 15 factors compared.

TriCo Bancshares Company Profile

TriCo Bancshares is a bank holding company. The Company’s principal subsidiary is Tri Counties Bank, a California-chartered commercial bank (the Bank). The Bank offers banking services to retail customers and small to medium-sized businesses through 68 branch offices in Northern and Central California. As of December 31, 2016, the Bank was engaged in the general commercial banking business in 26 counties in Northern and Central California. The Bank operated from 58 traditional branches and 10 in-store branches, as of December 31, 2016. The Bank conducts a commercial banking business, including accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. It also offers installment note collection, issues cashier’s checks, sells travelers checks and provides safe deposit boxes and other customary banking services.

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