Comparing TCF Financial (TCF) & Cullen/Frost Bankers (CFR)

TCF Financial (NYSE: TCF) and Cullen/Frost Bankers (NYSE:CFR) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Volatility and Risk

TCF Financial has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

83.0% of TCF Financial shares are held by institutional investors. Comparatively, 78.6% of Cullen/Frost Bankers shares are held by institutional investors. 2.3% of TCF Financial shares are held by company insiders. Comparatively, 5.2% of Cullen/Frost Bankers shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for TCF Financial and Cullen/Frost Bankers, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TCF Financial 1 9 4 0 2.21
Cullen/Frost Bankers 2 11 3 0 2.06

TCF Financial currently has a consensus target price of $24.65, indicating a potential downside of 4.70%. Cullen/Frost Bankers has a consensus target price of $109.12, indicating a potential downside of 8.15%. Given TCF Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe TCF Financial is more favorable than Cullen/Frost Bankers.

Earnings and Valuation

This table compares TCF Financial and Cullen/Frost Bankers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TCF Financial $1.47 billion 2.97 $268.63 million $1.20 21.56
Cullen/Frost Bankers $1.23 billion 6.17 $364.14 million $5.45 21.80

Cullen/Frost Bankers has lower revenue, but higher earnings than TCF Financial. TCF Financial is trading at a lower price-to-earnings ratio than Cullen/Frost Bankers, indicating that it is currently the more affordable of the two stocks.


TCF Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Cullen/Frost Bankers pays an annual dividend of $2.28 per share and has a dividend yield of 1.9%. TCF Financial pays out 50.0% of its earnings in the form of a dividend. Cullen/Frost Bankers pays out 41.8% 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. Cullen/Frost Bankers has raised its dividend for 25 consecutive years.


This table compares TCF Financial and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TCF Financial 19.62% 10.86% 1.12%
Cullen/Frost Bankers 30.40% 12.34% 1.23%


Cullen/Frost Bankers beats TCF Financial on 11 of the 17 factors compared between the two stocks.

About TCF Financial

TCF Financial Corporation operates as the holding company for TCF National Bank that provides various financial products and services in the United States and Canada. It operates through Consumer Banking, Wholesale Banking, and Enterprise Services segments. The company offers checking, savings, and money market accounts; certificates of deposits; and individual retirement accounts. It also provides consumer loans; loans secured by personal property, as well as unsecured personal loans; commercial real estate products; lease and equipment financing products; inventory financing products; and residential, consumer, and small business lending products. In addition, the company offers treasury services, such as investment and borrowing portfolios, as well as manages capital, debt, and market risks. Further, it provides credit, debit, and prepaid cards; and check cashing and remittance services. As of December 31, 2017, the company had 320 branches consisting of 189 traditional branches, 128 supermarket branches, and 3 campus branches. TCF Financial Corporation was founded in 1923 and is headquartered in Wayzata, Minnesota.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. The company operates in two segments, Banking and Frost Wealth Advisors. It provides commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction, equipment, inventories and accounts receivable, and acquisition financing; commercial leasing; and treasury management services. The company also offers consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. Its international banking services comprise accepting deposits, making loans, issuing letter of credits, handling foreign collections, transmitting funds, and dealing in foreign exchange. In addition, the company acts as correspondent for approximately 203 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services consisting of sales and trading, new issue underwriting, money market trading, advisory services, and securities safekeeping and clearance; and supports international business activities. Further, it offers insurance and securities brokerage services; holds securities for investment purposes; and provides loans to qualified borrowers, as well as offers investment management services to Frost-managed mutual funds, institutions, and individuals. The company operates approximately 134 financial centers and approximately 1,300 ATMs in Texas. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.

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