Comparing NB Bancorp (NASDAQ:NBBK) & Third Coast Bancshares (NASDAQ:TCBX)

NB Bancorp (NASDAQ:NBBK) and Third Coast Bancshares (NASDAQ:TCBX) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Volatility & Risk

NB Bancorp has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Third Coast Bancshares has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares NB Bancorp and Third Coast Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	13.86%	6.04%	0.93%
Third Coast Bancshares	14.06%	10.93%	1.04%

Institutional and Insider Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. 1.9% of NB Bancorp shares are held by company insiders. Comparatively, 10.2% of Third Coast Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NB Bancorp and Third Coast Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NB Bancorp	$172.73 million	4.35	$42.15 million	$1.07	16.79
Third Coast Bancshares	$170.48 million	2.65	$47.67 million	$2.77	11.82

Third Coast Bancshares has lower revenue, but higher earnings than NB Bancorp. Third Coast Bancshares is trading at a lower price-to-earnings ratio than NB Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for NB Bancorp and Third Coast Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
Third Coast Bancshares	0	2	2	0	2.50

NB Bancorp currently has a consensus target price of $22.00, suggesting a potential upside of 22.43%. Third Coast Bancshares has a consensus target price of $37.25, suggesting a potential upside of 13.78%. Given NB Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe NB Bancorp is more favorable than Third Coast Bancshares.

Summary

Third Coast Bancshares beats NB Bancorp on 9 of the 14 factors compared between the two stocks.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, Texas.