Trustmark Corporation (NASDAQ: TRMK) and Select Bancorp (NASDAQ:SLCT) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Earnings & Valuation
This table compares Trustmark Corporation and Select Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Trustmark Corporation||$569.20 million||3.99||$115.16 million||$1.70||19.70|
|Select Bancorp||$33.23 million||4.07||$6.76 million||$0.58||20.02|
Trustmark Corporation has higher revenue and earnings than Select Bancorp. Trustmark Corporation is trading at a lower price-to-earnings ratio than Select Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Trustmark Corporation and Select Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trustmark Corporation currently has a consensus price target of $33.75, indicating a potential upside of 0.78%. Select Bancorp has a consensus price target of $13.00, indicating a potential upside of 11.97%. Given Select Bancorp’s higher probable upside, analysts plainly believe Select Bancorp is more favorable than Trustmark Corporation.
Trustmark Corporation pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Select Bancorp does not pay a dividend. Trustmark Corporation pays out 54.1% of its earnings in the form of a dividend.
This table compares Trustmark Corporation and Select Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
62.4% of Trustmark Corporation shares are owned by institutional investors. Comparatively, 16.8% of Select Bancorp shares are owned by institutional investors. 1.4% of Trustmark Corporation shares are owned by insiders. Comparatively, 14.2% of Select Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Trustmark Corporation has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Select Bancorp has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.
Trustmark Corporation beats Select Bancorp on 9 of the 14 factors compared between the two stocks.
About Trustmark Corporation
Trustmark Corporation is a bank holding company. The Company’s principal subsidiary is Trustmark National Bank (TNB). Through TNB and its subsidiaries, the Company operates as a financial services company providing banking and other financial solutions. It operates through three segments: General Banking, Wealth Management and Insurance. The General Banking Division is responsible for all traditional banking products and services, including loans and deposits. The Wealth Management Division provides customized solutions for customers by integrating financial services with traditional banking products and services, such as money management, full-service brokerage, financial planning, personal and institutional trust and retirement services. Through Fisher Brown Bottrell Insurance, Inc. (FBBI), a subsidiary of TNB, the Insurance Division provides a range of retail insurance products, including commercial risk management products, bonding, group benefits and personal lines coverage.
About Select Bancorp
Select Bancorp, Inc. is the bank holding company for Select Bank & Trust Company (the Bank). The Bank is a commercial bank. The Bank provides commercial and retail financial services to customers located in its market areas. The Bank offers a range of banking services, including checking and savings accounts, commercial, consumer, mortgage and personal loans, and other associated financial services. The Bank’s lending activities are oriented to the consumer/retail customer, as well as to the small-to-medium sized businesses located in central and eastern North Carolina. The Bank offers commercial, consumer and mortgage lending products. It originates construction loans for the purpose of acquisition, development and construction of both residential and commercial properties (ADC loans). The Bank’s deposits include savings, negotiable order of withdrawal (NOW) account and money market deposits, time deposits and non-interest-bearing deposits.
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