Analyzing TCF Financial (TCF) & Its Rivals

TCF Financial (NYSE: TCF) is one of 313 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare TCF Financial to similar companies based on the strength of its earnings, dividends, analyst recommendations, profitability, institutional ownership, risk and valuation.

Profitability

This table compares TCF Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TCF Financial 15.27% 9.63% 0.98%
TCF Financial Competitors 17.80% 8.39% 0.95%

Analyst Recommendations

This is a summary of current ratings and price targets for TCF Financial and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TCF Financial 1 7 5 0 2.31
TCF Financial Competitors 2041 8337 8204 369 2.36

TCF Financial currently has a consensus target price of $19.58, suggesting a potential downside of 11.39%. As a group, “Banks” companies have a potential downside of 6.43%. Given TCF Financial’s rivals stronger consensus rating and higher possible upside, analysts plainly believe TCF Financial has less favorable growth aspects than its rivals.

Dividends

TCF Financial pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. TCF Financial pays out 26.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.9% of their earnings in the form of a dividend.

Institutional and Insider Ownership

82.2% of TCF Financial shares are held by institutional investors. Comparatively, 51.9% of shares of all “Banks” companies are held by institutional investors. 2.5% of TCF Financial shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares TCF Financial and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TCF Financial $1.40 billion $212.12 million 19.39
TCF Financial Competitors $5.64 billion $754.88 million 393.96

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

Volatility & Risk

TCF Financial has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, TCF Financial’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Summary

TCF Financial rivals beat TCF Financial on 10 of the 15 factors compared.

TCF Financial Company Profile

TCF Financial Corporation (TCF) is a bank holding company. The Company’s principal subsidiary is TCF National Bank (TCF Bank). The Company operates in three segments: Consumer Banking, Wholesale Banking and Enterprise Services. Consumer Banking comprises all of the Company’s consumer-facing businesses. The Consumer Banking segment includes retail banking, consumer real estate and auto finance. Wholesale Banking comprises commercial real estate and business lending, leasing and equipment finance and inventory finance. TCF’s consumer banking strategy is primarily to generate deposits to use for funding high credit quality secured loans and leases. Enterprise Services comprises corporate treasury, corporate functions and the Holding Company. As of December 31, 2016, the Company’s total securities available for sale were $1.4 billion. As of December 31, 2016, the Company’s total loans were $17.8 billion. As of December 31, 2016, the Company’s total deposits were $17.2 billion.

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