Critical Analysis: Triumph Financial (NASDAQ:TFIN) versus Chemung Financial (NASDAQ:CHMG)

Chemung Financial (NASDAQ:CHMG) and Triumph Financial (NASDAQ:TFIN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Chemung Financial and Triumph Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemung Financial	$137.62 million	1.62	$25.00 million	$4.52	10.35
Triumph Financial	$487.93 million	3.78	$41.08 million	$0.54	146.04

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

Profitability

This table compares Chemung Financial and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemung Financial	14.56%	10.60%	0.78%
Triumph Financial	3.30%	1.93%	0.28%

Risk & Volatility

Chemung Financial has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Institutional & Insider Ownership

47.5% of Chemung Financial shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 12.0% of Chemung Financial shares are owned by insiders. Comparatively, 6.2% of Triumph Financial shares are owned by 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 Ratings

This is a summary of current ratings for Chemung Financial and Triumph Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemung Financial	0	2	0	0	2.00
Triumph Financial	2	3	0	0	1.60

Chemung Financial currently has a consensus price target of $58.50, indicating a potential upside of 25.08%. Triumph Financial has a consensus price target of $78.60, indicating a potential downside of 0.33%. Given Chemung Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Chemung Financial is more favorable than Triumph Financial.

Summary

Chemung Financial beats Triumph Financial on 7 of the 13 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

About Triumph Financial

Triumph Financial, Inc., a financial holding company, provides various payments, factoring, and banking services in the United States. It operates through Banking, Factoring, and Payments segments. The company offers deposit products, including checking, savings, money market and certificates of deposit; and loan products, such as commercial real estate, land, commercial construction and land development, residential real estate, commercial agriculture, and consumer loans, as well as commercial and industrial loans, equipment loans, asset-based loans, business loans for working capital and operational purposes, and liquid credit loans. It also provides electronic banking services, debit cards, insurance brokerage services, mortgage warehouse facilities, and transportation factoring services, as well as payments services offered through TriumphPay platform, a payments network for the over-the-road trucking industry. The company was formerly known as Triumph Bancorp, Inc. and changed its name to Triumph Financial Inc. in December 2022. Triumph Financial Inc. was incorporated in 2003 and is headquartered in Dallas, Texas.