Head-To-Head Survey: Amalgamated Financial (NASDAQ:AMAL) versus TriCo Bancshares (NASDAQ:TCBK)

Amalgamated Financial (NASDAQ:AMAL) and TriCo Bancshares (NASDAQ:TCBK) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Amalgamated Financial has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Amalgamated Financial and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	24.19%	16.00%	1.24%
TriCo Bancshares	21.12%	9.45%	1.14%

Dividends

Amalgamated Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. TriCo Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. Amalgamated Financial pays out 14.1% of its earnings in the form of a dividend. TriCo Bancshares pays out 39.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TriCo Bancshares has raised its dividend for 12 consecutive years. TriCo Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Amalgamated Financial and TriCo Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amalgamated Financial	$387.41 million	2.89	$87.98 million	$3.40	10.74
TriCo Bancshares	$499.75 million	3.23	$117.39 million	$3.36	14.57

TriCo Bancshares has higher revenue and earnings than Amalgamated Financial. Amalgamated Financial is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Amalgamated Financial and TriCo Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	0	3	0	3.00
TriCo Bancshares	0	3	3	0	2.50

Amalgamated Financial currently has a consensus price target of $32.17, indicating a potential downside of 11.90%. TriCo Bancshares has a consensus price target of $48.20, indicating a potential downside of 1.53%. Given TriCo Bancshares’ higher probable upside, analysts clearly believe TriCo Bancshares is more favorable than Amalgamated Financial.

Insider & Institutional Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are held by institutional investors. 0.9% of Amalgamated Financial shares are held by company insiders. Comparatively, 4.6% of TriCo Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.