TCBI vs CFR

For growth investors, Texas Capital Bancshares, Inc.

(TCBI) is the stronger pick with 13. 5% revenue growth year-over-year, versus 2. 5% for Cullen/Frost Bankers, Inc. (CFR). Cullen/Frost Bankers, Inc. (CFR) offers the better valuation at 14. 0x trailing P/E (13. 2x forward), making it the more compelling value choice. Analysts rate Texas Capital Bancshares, Inc. (TCBI) a "Hold" — based on 39 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Cullen/Frost Bankers, Inc.

(CFR) is the cheapest at 14. 0x versus Texas Capital Bancshares, Inc. at 14. 8x. On forward P/E, Texas Capital Bancshares, Inc. is actually cheaper at 13. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Texas Capital Bancshares, Inc. wins at 0. 30x versus Cullen/Frost Bankers, Inc. 's 0. 92x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Texas Capital Bancshares, Inc.

(TCBI) delivered a total return of +43. 2%, compared to +26. 6% for Cullen/Frost Bankers, Inc. (CFR). Over 10 years, the gap is even starker: CFR returned +182. 0% versus TCBI's +136. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Cullen/Frost Bankers, Inc.

(CFR) is the lower-risk stock at 0. 78β versus Texas Capital Bancshares, Inc. 's 1. 20β — meaning TCBI is approximately 52% more volatile than CFR relative to the S&P 500. On balance sheet safety, Texas Capital Bancshares, Inc. (TCBI) carries a lower debt/equity ratio of 26% versus 104% for Cullen/Frost Bankers, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Texas Capital Bancshares, Inc.

(TCBI) is pulling ahead at 13. 5% versus 2. 5% for Cullen/Frost Bankers, Inc. (CFR). On earnings-per-share growth, the picture is similar: Texas Capital Bancshares, Inc. grew EPS 431. 3% year-over-year, compared to 11. 8% for Cullen/Frost Bankers, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cullen/Frost Bankers, Inc.

(CFR) is the more profitable company, earning 22. 2% net margin versus 16. 5% for Texas Capital Bancshares, Inc. — meaning it keeps 22. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CFR leads at 26. 4% versus 22. 2% for TCBI. At the gross margin level — before operating expenses — CFR leads at 75. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Texas Capital Bancshares, Inc. (TCBI) is the more undervalued stock at a PEG of 0. 30x versus Cullen/Frost Bankers, Inc. 's 0. 92x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Texas Capital Bancshares, Inc. (TCBI) trades at 13. 2x forward P/E versus 13. 2x for Cullen/Frost Bankers, Inc. — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CFR: 11. 2% to $154. 13.

All stocks in this comparison pay dividends.

Cullen/Frost Bankers, Inc. (CFR) offers the highest yield at 2. 9%, versus 0. 4% for Texas Capital Bancshares, Inc. (TCBI).

For long-horizon retirement investors, Cullen/Frost Bankers, Inc.

(CFR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 78), 2. 9% yield, +182. 0% 10Y return). Both have compounded well over 10 years (CFR: +182. 0%, TCBI: +136. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

CFR pays a dividend while TCBI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.