Contrasting Texas Capital Bancshares (NASDAQ:TCBI) & Dacotah Banks (OTCMKTS:DBIN)

Dacotah Banks (OTCMKTS:DBIN) and Texas Capital Bancshares (NASDAQ:TCBI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Dacotah Banks and Texas Capital Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dacotah Banks	$199.04 million	1.86	$26.17 million	$2.39	13.85
Texas Capital Bancshares	$1.79 billion	2.18	$189.14 million	$0.18	469.00

Texas Capital Bancshares has higher revenue and earnings than Dacotah Banks. Dacotah Banks 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.

Volatility & Risk

Dacotah Banks has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Texas Capital Bancshares has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dacotah Banks and Texas Capital Bancshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dacotah Banks	0	0	0	0	0.00
Texas Capital Bancshares	4	8	4	0	2.00

Texas Capital Bancshares has a consensus target price of $74.69, indicating a potential downside of 11.53%. Given Texas Capital Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Texas Capital Bancshares is more favorable than Dacotah Banks.

Profitability

This table compares Dacotah Banks and Texas Capital Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dacotah Banks	11.04%	N/A	N/A
Texas Capital Bancshares	1.40%	8.06%	0.79%

Institutional & Insider Ownership

96.9% of Texas Capital Bancshares shares are held by institutional investors. 1.0% of Texas Capital Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Texas Capital Bancshares beats Dacotah Banks on 12 of the 14 factors compared between the two stocks.

About Dacotah Banks

Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.

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.