Comparing Signature Bank (NASDAQ:SBNYP) & Community Financial (NASDAQ:TCFC)

Community Financial (NASDAQ:TCFC) and Signature Bank (NASDAQ:SBNYP) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Valuation and Earnings

This table compares Community Financial and Signature Bank’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Financial	$82.52 million	1.86	$28.32 million	$5.20	5.21
Signature Bank	$2.70 billion	N/A	N/A	N/A	N/A

Community Financial has higher earnings, but lower revenue than Signature Bank.

Profitability

This table compares Community Financial and Signature Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Financial	29.65%	15.94%	1.26%
Signature Bank	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Community Financial and Signature Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Financial	0	1	1	0	2.50
Signature Bank	0	0	0	0	N/A

Community Financial presently has a consensus price target of $45.00, suggesting a potential upside of 66.11%. Given Community Financial’s higher probable upside, analysts plainly believe Community Financial is more favorable than Signature Bank.

Insider & Institutional Ownership

37.8% of Community Financial shares are held by institutional investors. 8.0% of Community Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Community Financial beats Signature Bank on 7 of the 8 factors compared between the two stocks.

About Community Financial

The Community Financial Corporation operates as the bank holding company for Community Bank of the Chesapeake that provides commercial and retail banking services to individuals and businesses. The company offers demand, savings, money market, and time deposit accounts, as well as certificates of deposit; and commercial real estate and other non-residential real estate, residential first mortgage, residential rental mortgage, construction and land development, home equity and second mortgage, and commercial equipment loans, as well as commercial loan products, including term loans, demand loans, and lines of credit; consumer loans, such as loans for automobiles, boats, recreational vehicles, and trucks, home improvement loans, secured and unsecured personal lines of credit, and credit card loans. It also provides safe deposit box, night depository, cash vault, automated clearinghouse transaction, wire transfer, automated teller machine (ATM), online and telephone banking, retail and business mobile banking, remote deposit capture, reciprocal deposit, merchant card, credit monitoring, investment, positive pay, payroll, account reconciliation, bill pay, credit card, and lockbox services. The company was formerly known as Tri-County Financial Corporation and changed its name to The Community Financial Corporation in October 2013. The Community Financial Corporation was founded in 1950 and is headquartered in Waldorf, Maryland.

About Signature Bank

Signature Bank provides commercial banking products and services. It accepts various deposit products, including checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, certificates of deposit, and other cash management products. The company provides various lending products comprising commercial and industrial loans, real estate loans, and letters of credit. In addition, it offers asset management and investment products; and retirement products, such as individual retirement accounts and administrative services for retirement vehicles. Further, the company provides wealth management services to its high net worth personal clients; and purchases, sells, and assembles small business administration loans and pools. Additionally, it offers individual and group insurance products, including health, life, disability, and long-term care insurance products for business and private clients. As of December 31, 2021, the company operated 37 private client offices located in the metropolitan New York area, Connecticut, California, and North Carolina. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.